An Economic Analysis of the Rise and Decline of Chinese Township and Village Enterprises

This book provides a historical economic analysis of two key issues relating to township and village enterprise (TVE) development in China. Firstly, the nature of the evolving relationship between TVEs and local government; in particular how TVE entrepreneurs have used institutionalized power to secure the political influence needed to defend their financial independence. Secondly, the relationship between TVEs and state-owned enterprises (SOEs), and the role of SOEs in China's economic transition.

This study highlights the importance of the role of SOEs in the dual-track pricing system and its impact on other parts of the economy. Township and village enterprises were key to China's success in the late twentieth century, but have more or less disappeared as an entity over the past decade or so. By measuring the structural difference of the SOE sector before and after 19982003 SOE reform, Jin explains their fast catch-up in productivity since the mid-1990s, as well as the relative decline of TVE productivity.

Traces the evolution of the relationship between Township and Village Enterprises (TVEs) and State-Owned Enterprises (SEOs) Demonstrates that the SOE institution has been integrated so centrally into China's basic political and economic institutional framework that changes taking place in SOE institutions in the late twentieth century were bound to impact on TVEs Attributes part of TVEs' outstanding economic performance to subsidies from the SOE sector, above all through the dual-track system Addresses the link between China's economic environment and the economic performance of TVEs

Auteur
Cheng Jin is Associate Research Fellow in the Institute of Public Policy at the South China University of Technology, China. His research areas include imperial China's land market, and China's fiscal management from the seventeenth to the nineteenth century.

Contenu

Chapter 1. Introduction.- Chapter 2. TVEs: Theories and Methodology.- Chapter 3. Township and Village Enterprises: History and Institutions (19581997).- Chapter 4. Ownership Structure of TVEs: TVE and Local Politics.- Chapter 5. The Fall and Rise of State-Owned Enterprises (I): The Dual-Track Price System.- Chapter 6. The Fall and Rise of State-owned Enterprises (II): The Institutional Root of the Chinese Dual Head Economy.- Chapter 7. TVE and the Economic Environment.- Chapter 8. Conclusions.