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Public Versus Private Ownership Of Firms: Evidence From Rural China

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  • Hehui Jin
  • Yingyi Qian
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    Abstract

    Why are many of China's successful rural enterprises publically owned by local communities? Using a set of provincial data, we find that the share of community public firms (Township-Village Enterprises, or TVEs) relative to private enterprises is higher where the central government's influence is greater, the community government's power is stronger, and the level of market development is lower. We also find that TVEs help achieve the community government's goals of increasing government revenue, rural nonfarm employment, and rural income. However, TVEs do not increase rural income given the levels of nonfarm employment and local public goods provision, indicating possible inefficiency as compared with private enterprises. © 2000 the President and Fellows of Harvard College and the Massachusetts Institute of Technology

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    Bibliographic Info

    Article provided by MIT Press in its journal The Quarterly Journal of Economics.

    Volume (Year): 113 (1998)
    Issue (Month): 3 (August)
    Pages: 773-808

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    Handle: RePEc:tpr:qjecon:v:113:y:1998:i:3:p:773-808

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