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Township and Village Enterprises in China

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  • Xiaolan Fu
  • V. N. Balasubramanyam

Abstract

Township and Village Enterprises (TVEs) have played a significant role in the growth of the Chinese economy since the economic reforms of 1978. This paper analyses the productive efficiency of a cross section of TVEs in the manufacturing sector. TVEs are found to be much more efficient than comparable state-owned enterprises (SOEs). They are also competitive in the international markets. Their management which responds to market forces and their outward-orientation have contributed to their productive efficiency. The paper concludes that efficient management, which successfully exploits the endowments and resources of the country rather than the nature of ownership of production entities, is crucial to the success of manufacturing firms.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 39 (2003)
Issue (Month): 4 ()
Pages: 27-46

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Handle: RePEc:taf:jdevst:v:39:y:2003:i:4:p:27-46

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Related research

Keywords: Township and Village Enterprises; managerial efficiency; methods of remuneration; outward-orientation;

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References

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  1. Groves, Theodore, et al, 1994. "Autonomy and Incentives in Chinese State Enterprises," The Quarterly Journal of Economics, MIT Press, vol. 109(1), pages 183-209, February.
  2. Button, Kenneth J & Weyman-Jones, Thomas G, 1992. "Ownership Structure, Institutional Organization and Measured X-Efficiency," American Economic Review, American Economic Association, vol. 82(2), pages 439-45, May.
  3. Zheng, Jinghai & Liu, Xiaoxuan & Bigsten, Arne, 1998. "Ownership Structure and Determinants of Technical Efficiency: An Application of Data Envelopment Analysis to Chinese Enterprises (1986-1990)," Journal of Comparative Economics, Elsevier, vol. 26(3), pages 465-484, September.
  4. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
  5. Weitzman Martin L. & Xu Chenggang, 1994. "Chinese Township-Village Enterprises as Vaguely Defined Cooperatives," Journal of Comparative Economics, Elsevier, vol. 18(2), pages 121-145, April.
  6. Chen, Hongyi & Rozelle, Scott, 1999. "Leaders, managers, and the organization of township and village enterprises in China," Journal of Development Economics, Elsevier, vol. 60(2), pages 529-557, December.
  7. G. Johnes & J. Johnes, . "Measuring the Research Performance of UK Economics Departments: An Application of Data Envelopment Analysis," Working Papers ec17/90, Department of Economics, University of Lancaster.
  8. Jefferson, Gary H. & Rawski, Thomas G. & Zheng, Yuxin, 1996. "Chinese Industrial Productivity: Trends, Measurement Issues, and Recent Developments," Journal of Comparative Economics, Elsevier, vol. 23(2), pages 146-180, October.
  9. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
  10. Balasubramanyam, V N & Salisu, M & Sapsford, David, 1996. "Foreign Direct Investment and Growth in EP and IS Countries," Economic Journal, Royal Economic Society, vol. 106(434), pages 92-105, January.
  11. Irene Henriques & Perry Sadorsky, 1996. "Export-Led Growth or Growth-Driven Exports? The Canadian Case," Canadian Journal of Economics, Canadian Economics Association, vol. 29(3), pages 540-55, August.
  12. Leibenstein, Harvey, 1978. "On the Basic Proposition of X-Efficiency Theory," American Economic Review, American Economic Association, vol. 68(2), pages 328-32, May.
  13. Jin-Tan Liu & Meng-Wen Tsou & James Hammitt, 1999. "Export activity and productivity: Evidence from the Taiwan electronics industry," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(4), pages 675-691, December.
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Citations

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Cited by:
  1. Zeting LIU, 2013. "Les PME dans les politiques de soutien à l’innovation en Chine THE POSITION OF SMES WITHIN THE INNOVATION POLICY IN CHINA," Working Papers 266, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.
  2. Xiaolan Fu & V.N.Balasubramanyam, 2004. "Exports, FDI, Growth Of Small Rural Enterprises And Employment In China," ESRC Centre for Business Research - Working Papers wp286, ESRC Centre for Business Research.
  3. Fan, C. Simon & Stark, Oded, 2008. "Rural-to-urban migration, human capital, and agglomeration," Journal of Economic Behavior & Organization, Elsevier, vol. 68(1), pages 234-247, October.
  4. Wacker, John G. & Yang, Chen-Lung & Sheu, Chwen, 2006. "Productivity of production labor, non-production labor, and capital: An international study," International Journal of Production Economics, Elsevier, vol. 103(2), pages 863-872, October.
  5. Wang, Jiao & Mayes, David & Wan, Guanghua, 2005. "Income Distribution and Labour Movement in China after WTO Membership: A CGE Analysis," Working Paper Series RP2005/38, World Institute for Development Economic Research (UNU-WIDER).
  6. Singh, Nirvikar, 2007. "Fiscal Decentralization in China and India: Competitive, Cooperative or Market Preserving Federalism?," Santa Cruz Department of Economics, Working Paper Series qt76d8b4hm, Department of Economics, UC Santa Cruz.
  7. Xiaolan Fu, 2004. "Exports, Technical Progress and Productivity Growth in Chinese Manufacturing Industries," ESRC Centre for Business Research - Working Papers wp278, ESRC Centre for Business Research.
  8. Céline Bonnefond & Matthieu Clément, 2012. "An analysis of income polarisation in rural and urban China," Post-Communist Economies, Taylor & Francis Journals, vol. 24(1), pages 15-37, June.
  9. Ito, Junichi, 2006. "Economic and institutional reform packages and their impact on productivity: A case study of Chinese township and village enterprises," Journal of Comparative Economics, Elsevier, vol. 34(1), pages 167-190, March.
  10. Xiaolan Fu, 2005. "Exports, technical progress and productivity growth in a transition economy: a non-parametric approach for China," Applied Economics, Taylor & Francis Journals, vol. 37(7), pages 725-739.
  11. Shenggen Fan & Ravi Kanbur & Shang-Jin Wei & Xiaobo Zhang, 2013. "The Economics of China: Successes and Challenges," NBER Working Papers 19648, National Bureau of Economic Research, Inc.
  12. Andy Cosh & Xiaolan Fu & Alan Hughes, 2005. "Management characteristics, collaboration and innovative efficiency: evidence from UK survey data," ESRC Centre for Business Research - Working Papers wp311, ESRC Centre for Business Research.

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