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Institutional Environment, Community Government, and Corporate Governance: Understanding China's Township-Village Enterprises

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Author Info
Che, Jiahua
Qian, Yingyi

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Abstract

We study China's township-village enterprises (TVEs) from an organizational perspective with a focus on governance. Unlike most previous studies, we interpret the firm boundaries of TVEs at the community level rather than the enterprise level. From this perspective, we analyze the central role that community governments play in TVE governance as an organizational response to the imperfect institutional environment of both state and market. Specifically we show that the community government's in TVEs helps overcome the problems of state predation and underfinancing of private enterprises. We also explain why TVE governance leads to harder budget constraints than the state-owned enterprises. Copyright 1998 by Oxford University Press.

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Publisher Info
Article provided by Oxford University Press in its journal Journal of Law, Economics and Organization.

Volume (Year): 14 (1998)
Issue (Month): 1 (April)
Pages: 1-23
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:oup:jleorg:v:14:y:1998:i:1:p:1-23

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Spiller, Pablo T. & Sampson, Cezley I., 1993. "Regulation, institutions and commitment : the Jamaican telecommunications sector," Policy Research Working Paper Series 1362, The World Bank. [Downloadable!]
  2. Hart, Oliver & Moore, John, 1990. "Property Rights and the Nature of the Firm," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1119-58, December. [Downloadable!] (restricted)
    Other versions:
  3. Naughton, Barry, 1994. "Chinese Institutional Innovation and Privatization from Below," American Economic Review, American Economic Association, vol. 84(2), pages 266-70, May. [Downloadable!] (restricted)
  4. Grossman, Sanford J & Hart, Oliver D, 1986. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 691-719, August. [Downloadable!] (restricted)
    Other versions:
  5. Litwack, John M, 1991. "Legality and Market Reform in Soviet-Type Economies," Journal of Economic Perspectives, American Economic Association, vol. 5(4), pages 77-89, Fall. [Downloadable!] (restricted)
  6. Dewatripont, M & Maskin, E, 1995. "Credit and Efficiency in Centralized and Decentralized Economies," Review of Economic Studies, Blackwell Publishing, vol. 62(4), pages 541-55, October. [Downloadable!] (restricted)
  7. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June. [Downloadable!] (restricted)
  8. Hehui Jin & Yingyi Qian, 1997. "Ownership and Institutions: Evidence in Rural China," William Davidson Institute Working Papers Series 28, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. John Shuhe Li, 2000. "Determinants of Private Sector Development in Chinese Industry," Microeconomics Working Papers 208, East Asian Bureau of Economic Research. [Downloadable!]
  2. Jihua Che, 2002. "Rent Seeking and Government Ownership of Firms: An Application to China’s Township-Village Enterprises," William Davidson Institute Working Papers Series 497, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  3. Chun Chang Yijiang Wang & Brian McCall & Yijiang Wang, 2000. "Incentive Contracting versus Ownership Reforms: Evidence from China's Township and Village Enterprises," William Davidson Institute Working Papers Series 365, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  4. Qian, Yingyi, 2002. "How Reform Worked in China," CEPR Discussion Papers 3447, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Jiahua Che, 2000. "From the Grabbing Hand to the Helping Hand," William Davidson Institute Working Papers Series 58, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  6. Qian, Yingyi & Weingast, Barry R, 1997. "Federalism as a Commitment to Reserving Market Incentives," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 83-92, Fall. [Downloadable!] (restricted)
  7. Jiahua Che, 2003. "The Life Cycle of Government Ownership," William Davidson Institute Working Papers Series 2003-627, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  8. Sean M. Dougherty & Robert H. McGuckin, 2001. "The Effect of Ownership Structure and Jurisdictional Governance on Productivity in Chinese Enterprises," Economics Program Working Papers 02-01, The Conference Board, Economics Program, revised Jan 2002. [Downloadable!]
    Other versions:
  9. Loren Brandt & Hongbin Li & Joanne Roberts, 2004. "Why Do Governments Privatize?," Discussion Papers 00007, Chinese University of Hong Kong, Department of Economics. [Downloadable!]
    Other versions:
  10. Albert Park & Minggao Shen, 2002. "A Refinancing Model of Decentralization with Empirical Evidence from China," William Davidson Institute Working Papers Series 461, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  11. Ruan, Jianqing & Zhang, Xiaobo, 2008. "Finance and cluster-based industrial development in China:," IFPRI discussion papers 768, International Food Policy Research Institute (IFPRI). [Downloadable!]
    Other versions:
  12. Yingyi Qian, 1999. "The Institutional Foundations of China's Market Transition," Working Papers 99011, Stanford University, Department of Economics. [Downloadable!]
  13. Daniel Berkowitz & David DeJong, 2001. "Entrepreneurship and Post-Socialist Growth," William Davidson Institute Working Papers Series 406, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  14. Yingyi Qian, 2002. "How Reform Worked in China," William Davidson Institute Working Papers Series 473, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  15. Hehui Jin & Yingyi Qian, . "Public vs. Private Ownership of Firms: Evidence from Rural China," Working Papers 97047, Stanford University, Department of Economics. [Downloadable!]
  16. Boudewijn Bouckaert, 2007. "Bureaupreneurs in China: we did it our way," European Journal of Law and Economics, Springer, vol. 23(2), pages 169-195, April. [Downloadable!] (restricted)
  17. Fang, Xiangming & Smith, Rodney B.W., 2002. "Barriers To Efficiency And The Privatization Of Township-Village Enterprises," 2002 Annual meeting, July 28-31, Long Beach, CA 19744, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  18. Jiahua Che & Yingyi Qian, . "Insecure Property Rights and Government Ownership of Firms," Working Papers 97050, Stanford University, Department of Economics. [Downloadable!]
    Other versions:
  19. John McMillan & Christopher Woodruff, 2002. "The Central Role of Entrepreneurs in Transition Economies," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 153-170, Summer. [Downloadable!] (restricted)
  20. Hongbin Li & Lingsheng Meng & Junsen Zhang, 2005. "Why Do Entrepreneurs Enter Politics?," Discussion Papers 00009, Chinese University of Hong Kong, Department of Economics. [Downloadable!]
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