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Labour manoeuvrability and economic performance

Author

Listed:
  • Eelco Modderman
  • Cees Gorter
  • Jasper Dalhuisen
  • Peter Nijkamp

Abstract

Purpose - The aim of this paper is to explain the relationship between economic performance and labour manoeuvrability of township‐village enterprises in the Jiangsu province, People's Republic of China. Design/methodology/approach - After a concise general overview of recent economic developments in the Chinese economy and the functioning of labour markets, a statistical analysis was performed on economic performance and labour market conditions based on a sample of 103 enterprises in the area considered. Findings - The analysis shows that the flexibility to fire employees has a considerable impact on the rise in added value of the enterprises, whereas hiring flexibility appears to have negligible effects. Research limitations/implications - Although the paper has a limited scope related to one Chinese province, it seems plausible that the results – a positive economic effect of deregulation – have a more general validity, but this would call for a broader comparative study across sectors and regions. Originality/value - The paper thus offers a novel contribution to a better understanding of the economic performance after the fast changes in the Chinese economy.

Suggested Citation

  • Eelco Modderman & Cees Gorter & Jasper Dalhuisen & Peter Nijkamp, 2007. "Labour manoeuvrability and economic performance," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 34(4), pages 220-236, March.
    • Handle: RePEc:eme:ijsepp:v:34:y:2007:i:4:p:220-236
    DOI: 10.1108/03068290710734190
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    Cited by:

    1. Haifeng Qian, 2010. "Talent, creativity and regional economic performance: the case of China," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(1), pages 133-156, August.

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