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Township and Village Enterprises in China

  • Xiaolan Fu
  • V. N. Balasubramanyam

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.

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Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 39 (2003)
Issue (Month): 4 ()
Pages: 27-46

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Handle: RePEc:taf:jdevst:v:39:y:2003:i:4:p:27-46
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