Abstract Proposed by the national government at the beginning of 80s, the policy of "leaving the land but not the countryside" reflects the development strategy of the township enterprises of China. It means that the farmers can do nonfarming work in township enterprises but are not allowed to move to cities. From the viewpoint of economic theory and practice, the author points out the need for a change of the policy into "leaving the land first and then the countryside." This means good township enterprises should be allowed to moue to cities to get the benefit of scale economy and space concentration, and only by this way, can township enterprises turn into modern enterprises gradually.
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