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The Puzzle of China's Township¥VVillage Enterprises: The Paradox of Local Corporatism in a Dual-Track Economic Transition

  • Peter Ping Li

    (California State University)

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    This paper seeks to reconcile and synthesize the diverse views about the township¥Vvillage enterprises (TVEs) and local corporatism in the context of ongoing institutional changes in China as a transition economy. Specifically, I attempt to integrate the economic, political, cultural, and social explanations for TVEs, especially the two competing views of market competition and political corruption. I focus on the puzzle of TVE efficiency as well as the paradox of local corporatism as a government¥Vbusiness partnership with both a positive function of public alliance for wealth creation and a negative function of private collusion for wealth transfer. I argue that the key to both the puzzle of TVEs and the paradox of local corporatism lies in China's dual-track reform paradigm (i.e. a market-for-mass track and a state-for-elite track). Lastly, I discuss the critical implications for theory building and policymaking regarding economic transition in general.

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    Article provided by International Association of Chinese Management Research in its journal Management and Organization Review.

    Volume (Year): 1 (2005)
    Issue (Month): 2 (July)
    Pages: 197-224

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    Handle: RePEc:cmr:mor101:v:1:y:2005:i:2:p:197-224
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