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Township and Village Enterprises, Openness and Regional Economic Growth in China

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  • Maria Dacosta
  • Wayne Carroll

Abstract

By most standards China's post-1978 economic reforms have been a colossal success. Much of that success can be attributed to China's encouragement of foreign trade and its shift from state-owned enterprises to more market-oriented institutions such as township and village enterprises (TVEs). This article uses a province-level panel analysis to measure the contribution these reforms have made to China's growth. Like earlier cross-section studies of economic growth rates, the model explains differences in growth rates of per capita income between provinces by using initial endowments, demographic variables and measures of investment in human and physical capital as explanatory variables. Important contributions in this study are its focus on the role of TVEs and foreign trade and its use of time series data from the provinces. The results are consistent with earlier cross-country studies: strong evidence of convergence, a positive role for lagged investment and an insignificant role for human capital investment as measured by school enrolment. China's market-oriented reform has also contributed to its growth: openness has played a positive role and township and village enterprises have been strongly significant.

Suggested Citation

  • Maria Dacosta & Wayne Carroll, 2001. "Township and Village Enterprises, Openness and Regional Economic Growth in China," Post-Communist Economies, Taylor & Francis Journals, vol. 13(2), pages 229-241.
    • Handle: RePEc:taf:pocoec:v:13:y:2001:i:2:p:229-241
    DOI: 10.1080/14631370120052681
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    References listed on IDEAS

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    Cited by:

    1. Cheong, Tsun Se & Wu, Yanrui, 2013. "Regional disparity, transitional dynamics and convergence in China," Journal of Asian Economics, Elsevier, vol. 29(C), pages 1-14.
    2. Maria Manuela Nêveda Da Costa & Jianjun Ji, 2004. "Rural-Urban Economic Disparities among China’s Elderly," ERSA conference papers ersa04p444, European Regional Science Association.
    3. Xincai Gao & Zhongyang Ji & Fayyaz Ahmad & Muhammad Umar Draz, 2019. "Financial Support and Growth of Township and Village Enterprises in China: Fresh Evidence From Regional Analyses," SAGE Open, , vol. 9(2), pages 21582440198, June.
    4. Tsun Se Cheong & Yanrui Wu, 2013. "Globalization and Regional Inequality," Economics Discussion / Working Papers 13-10, The University of Western Australia, Department of Economics.
    5. Li, Guangchen & Wei, Weixian, 2021. "Financial development, openness, innovation, carbon emissions, and economic growth in China," Energy Economics, Elsevier, vol. 97(C).
    6. Wai Choi Lee & Tsun Se Cheong & Yanrui Wu & Jianxin Wu, 2019. "The Impacts of Financial Development, Urbanization, and Globalization on Income Inequality: A Regression-based Decomposition Approach," Asian Economic Papers, MIT Press, vol. 18(2), pages 126-141, Summer.
    7. 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.
    8. Hasan, Mohammad S., 2010. "The long-run relationship between population and per capita income growth in China," Journal of Policy Modeling, Elsevier, vol. 32(3), pages 355-372, May.
    9. Severian Vlăduț Iacob, 2015. "Entrepreneurship Support Of Economic Growth In China (I)," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 4(1), pages 1-10, January.
    10. Yanqing Jiang, 2012. "An empirical study of openness and convergence in labor productivity in the Chinese provinces," Economic Change and Restructuring, Springer, vol. 45(4), pages 317-336, November.

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