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Township and Village Enterprises in China

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  • Xiaolan Fu
  • V. N. Balasubramanyam

Abstract

Township and Village Enterprises (TVEs) have played a significant role in the growth of the Chinese economy since the economic reforms of 1978. This paper analyses the productive efficiency of a cross section of TVEs in the manufacturing sector. TVEs are found to be much more efficient than comparable state-owned enterprises (SOEs). They are also competitive in the international markets. Their management which responds to market forces and their outward-orientation have contributed to their productive efficiency. The paper concludes that efficient management, which successfully exploits the endowments and resources of the country rather than the nature of ownership of production entities, is crucial to the success of manufacturing firms.

Suggested Citation

  • Xiaolan Fu & V. N. Balasubramanyam, 2003. "Township and Village Enterprises in China," Journal of Development Studies, Taylor & Francis Journals, vol. 39(4), pages 27-46.
    • Handle: RePEc:taf:jdevst:v:39:y:2003:i:4:p:27-46
    DOI: 10.1080/713869424
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    Cited by:

    1. András Székely-Doby, 2018. "Why Have Chinese Reforms Come to a Halt? The Political Economic Logic of Unfinished Transformation," Europe-Asia Studies, Taylor & Francis Journals, vol. 70(2), pages 277-296, February.
    2. Andy Cosh & Xiaolan Fu & Alan Hughes, 2005. "Management characteristics, collaboration and innovative efficiency: evidence from UK survey data," Working Papers wp311, Centre for Business Research, University of Cambridge.
    3. Xu, Mengyao & Zhang, Zhengfeng, 2021. "Spatial differentiation characteristics and driving mechanism of rural-industrial Land transition: A case study of Beijing-Tianjin-Hebei region, China," Land Use Policy, Elsevier, vol. 102(C).
    4. Yanzhe Cui & Yingnan Niu & Yawen Ren & Shiyi Zhang & Lindan Zhao, 2024. "A Model to Analyze Industrial Clusters to Measure Land Use Efficiency in China," Land, MDPI, vol. 13(7), pages 1-22, July.
    5. Wacker, John G. & Yang, Chen-Lung & Sheu, Chwen, 2006. "Productivity of production labor, non-production labor, and capital: An international study," International Journal of Production Economics, Elsevier, vol. 103(2), pages 863-872, October.
    6. Jiao Wang & David G. Mayes & Guanghua Wan, 2005. "Income Distribution and Labour Movement in China After WTO Membership: a CGE Analysis," WIDER Working Paper Series RP2005-38, World Institute for Development Economic Research (UNU-WIDER).
    7. 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.
    8. Abeer Elshennawy & Mohammed Bouaddi, 2021. "Sources of firm-level heterogeneity in labour productivity in Egypt’s manufacturing sector," Empirical Economics, Springer, vol. 60(5), pages 2589-2612, May.
    9. Székely-Doby, András, 2014. "A kínai reformfolyamat politikai gazdaságtani logikája [The politico-economic logic of the Chinese reform process]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(12), pages 1397-1418.
    10. Alberto GABRIELE, 2016. "Lessons from Enterprise Reforms in China and Vietnam," Journal of Economic and Social Thought, KSP Journals, vol. 3(2), pages 265-284, June.
    11. Xiaolan Fu, 2004. "Exports, Technical Progress and Productivity Growth in Chinese Manufacturing Industries," Working Papers wp278, Centre for Business Research, University of Cambridge.
    12. Guo Yung-Hsing, 2011. "How Low- and Medium-technology Industries in Developing Countries Compete with Multinationals: Lessons from China’s Home Electronics Sector," Chapters, in: Paul L. Robertson & David Jacobson (ed.), Knowledge Transfer and Technology Diffusion, chapter 9, Edward Elgar Publishing.
    13. Xiaolan Fu, 2005. "Exports, technical progress and productivity growth in a transition economy: a non-parametric approach for China," Applied Economics, Taylor & Francis Journals, vol. 37(7), pages 725-739.
    14. 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.
    15. Shenggen Fan & Ravi Kanbur & Shang-Jin Wei & Xiaobo Zhang, 2013. "The Economics of China: Successes and Challenges," NBER Working Papers 19648, National Bureau of Economic Research, Inc.
    16. Zeting LIU, 2013. "Les PME dans les politiques de soutien à l’innovation en Chine THE POSITION OF SMES WITHIN THE INNOVATION POLICY IN CHINA," Working Papers 266, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.
    17. Zhang, Xiaolei & Zhou, Cai & Li, Ziyun & Sun, Wenping, 2025. "Can internet finance promote employment absorption by township enterprises in China?," Pacific-Basin Finance Journal, Elsevier, vol. 91(C).
    18. Fan, C. Simon & Stark, Oded, 2008. "Rural-to-urban migration, human capital, and agglomeration," Journal of Economic Behavior & Organization, Elsevier, vol. 68(1), pages 234-247, October.
    19. C�line Bonnefond & Matthieu Cl�ment, 2012. "An analysis of income polarisation in rural and urban China," Post-Communist Economies, Taylor & Francis Journals, vol. 24(1), pages 15-37, June.
    20. 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.
    21. Zheng, Lucy & Batuo, Michael Enowbi & Shepherd, David, 2017. "The Impact of Regional and Institutional Factors on Labor Productive Performance—Evidence from the Township and Village Enterprise Sector in China," World Development, Elsevier, vol. 96(C), pages 591-598.
    22. Xiaolan Fu & V.N.Balasubramanyam, 2004. "Exports, FDI, Growth Of Small Rural Enterprises And Employment In China," Working Papers wp286, Centre for Business Research, University of Cambridge.
    23. Xin Ma & Tao Huang, 2023. "China's Rural Industrialization and Agricultural Mechanization," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(3), pages 27-58, May.
    24. Wang, Jiao & Mayes, David & Wan, Guanghua, 2005. "Effects of WTO membership on income distribution and labour movement in China : A CGE analysis," BOFIT Discussion Papers 18/2005, Bank of Finland, Institute for Economies in Transition.

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