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Why TVES have contributed to interregional imbalances in China:

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  • Ito, Junichi
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    Abstract

    The major objectives of this paper are to shed some light on the mechanism that generates interregional economic imbalances among communities in rural China. Central to this issue is the development of township and village enterprises (TVEs) because the presence of secondary industry is closely associated with the economic welfare of the people residing in rural communities. In rural Jiangsu, for example, spatial disparities have become more pronounced over the past two decades. This fact suggests that the influence of initial conditions—historical and geographical advantages of industrial frontrunners—has not been erased but rather continues to persist. This is attributed to a variety of factors, including the less efficient use of TVE resources in poor areas, the decentralized fiscal system, and agglomeration economies. In short, the socialist regime of self-reliance that still lingers in China's rural society traps less advanced areas in poverty.

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    File URL: http://www.ifpri.org/sites/default/files/publications/eptdp91.pdf
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    Bibliographic Info

    Paper provided by International Food Policy Research Institute (IFPRI) in its series EPTD discussion papers with number 91.

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    Date of creation: 2002
    Date of revision:
    Handle: RePEc:fpr:eptddp:91

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    Keywords: Economic situation China.; Rural China Public investment Regional inequality.; Poverty.;

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    1. Kevin M. Murphy & Andrei Shleifer & Robert W. Vishny, 1988. "Industrialization and the Big Push," NBER Working Papers 2708, National Bureau of Economic Research, Inc.
    2. M Weitzman & Chenggang Xu, 1993. "Chinese Township Village Enterprises as Vaguely Defined Cooperations," CEP Discussion Papers dp0155, Centre for Economic Performance, LSE.
    3. Jimenez, Emmanuel, 1995. "Human and physical infrastructure: Public investment and pricing policies in developing countries," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 43, pages 2773-2843 Elsevier.
    4. Murakami, Naoki & Liu, Deqiang & Otsuka, Keijiro, 1996. "Market Reform, Division of Labor, and Increasing Advantage of Small-Scale Enterprises: The Case of the Machine Tool Industry in China," Journal of Comparative Economics, Elsevier, vol. 23(3), pages 256-277, December.
    5. Kanemoto, Yoshitsugu, 1990. "Optimal cities with indivisibility in production and interactions between firms," Journal of Urban Economics, Elsevier, vol. 27(1), pages 46-59, January.
    6. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
    7. Rozelle Scott & Boisvert Richard N., 1994. "Quantifying Chinese Village Leaders' Multiple Objectives," Journal of Comparative Economics, Elsevier, vol. 18(1), pages 25-45, February.
    8. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
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    Cited by:
    1. 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.

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