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(Table 3). In the central and western regions, a large part <strong>of</strong> salary incomecomes from the remittances <strong>of</strong> migrant workers. For example, in 2001,remittances accounted for 58.8 percent <strong>of</strong> salary income in Anhui Provincein central China, and 37.2 percent in Guizhou Province in southwesternChina (China Rural Household Survey Yearbook 2002, 257).Table 3. Annual Rural Salary Income in China in 1995 and 2000 (Yuan Per Capita)National East Central West1995 353.70 635.10 219.01 146.692000 702.30 1223.08 554.75 388.77Increased rate(percent)98.6 92.6 153.3 165.0Source: NBS 2002b, 67-69.There is no overall data on how the remittances are used at the householdlevel, but many researchers have observed that rural households spend alarge proportion <strong>of</strong> remittances on consumption and basic or “public sector”expenditures, including house building, festivals, primary education, basichealth care, etc. (Huang and Pieke 2004; Lu et al. 2002). A national surveyshows that in 1995 and 2000, more than 50 percent <strong>of</strong> cash expenditureswent on consumption (Table 4). Furthermore, <strong>of</strong> cash expenditures forfamily business, less than 20 percent were spent on businesses other thanagriculture (<strong>this</strong> includes husbandry, fishery and forestry). Only 14.98percent were spent in <strong>this</strong> way in 2000 (Figure 2). These findings indicatethat migrant workers’ remittances, while a main source <strong>of</strong> cash incomefor rural households, are largely used for consumption and agriculturalinvestment rather than for investment in non-agricultural activities.Table 4. Rural Households’ Cash Expenditure in 1995 and 2000 (Yuan Per Capita)TotalFamilybusinessPurchase <strong>of</strong>productionequipmentsTax andfeeConsumptionTransferand others1995 1545.81 454.74 62.33 76.96 859.43 92.352000 2140.37 544.49 63.91 89.81 1284.74 157.42Source: NBS 2002b, 177, 207225

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