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The Determinants of Export Performance of China's Township-Village Enterprises


  • Changqi Wu
  • Leonard K. Cheng


The rapid export growth of China's township-village enterprises (TVEs) has not been well understood and explained. Using a simple analytical model and exploring a unique dataset on China's TVEs, we investigate the determinants of TVEs' export performance as measured by export intensity. We _nd that TVEs'export performance is negatively related to the unit labour cost and positively related to the proportion of foreign capital in TVEs' new capital investment. Our results show that transaction costs hinder TVEs' export and the government's _nancial support has a positive, although limited, impact on TVEs' export performance.

Suggested Citation

  • Changqi Wu & Leonard K. Cheng, 1999. "The Determinants of Export Performance of China's Township-Village Enterprises," LICOS Discussion Papers 8299, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  • Handle: RePEc:lic:licosd:8299

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    Cited by:

    1. Meng, Xiangyi & Zhang, Li, 2011. "Democratic participation, fiscal reform and local governance: Empirical evidence on Chinese villages," China Economic Review, Elsevier, vol. 22(1), pages 88-97, March.

    More about this item


    Export Performance; township-village enterprises; China;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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