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Productivity Effects of TVE Privatization: The Case Study of Garment and Metal Casting Enterprises in the Greater Yangtze River Region

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  • Tetsushi Sonobe
  • Keijiro Otsuka

Abstract

While it is by now well known that the privatization of township- and village-run enterprises (TVREs) has been rapidly and widely taking place in China, it is much less known whether and to what extent privatization has improved resource allocation and productivity. As a first step toward the fuller understanding of the effect of privatization, this study undertakes case studies of garment and casting enterprises in the Greater Yantgze River Region, where TVREs led miraculous economic growth in the 1980s. Our empirical results indicate that productivity was significantly enhanced by the recent privatization with time lag of a few years.

Suggested Citation

  • Tetsushi Sonobe & Keijiro Otsuka, 2003. "Productivity Effects of TVE Privatization: The Case Study of Garment and Metal Casting Enterprises in the Greater Yangtze River Region," NBER Working Papers 9621, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:9621
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    Cited by:

    1. Zhan, Shaohua, 2015. "From Privatization to Deindustrialization: Implications of Chinese Rural Industry and the Ownership Debate Revisited," World Development, Elsevier, vol. 74(C), pages 108-122.
    2. Girum Abebe, 2012. "Ownership, Management Practices, Upgrading, and Productivity in the Metalworking sector: Evidence from Ethiopia," Working Papers 009, Policy Studies Institute.
    3. Liu, Deqiang & Otsuka, Keijiro, 2004. "A Comparison of Management Incentives, Abilities, and Efficiency between SOEs and TVEs: The Case of the Iron and Steel Industry in China," Economic Development and Cultural Change, University of Chicago Press, vol. 52(4), pages 759-780, July.
    4. Jiahua Che, 2003. "The Life Cycle of Government Ownership," William Davidson Institute Working Papers Series 2003-627, William Davidson Institute at the University of Michigan.

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    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • P2 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies

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