An Economic Analysis of the Rise and Decline of Chinese Township and Village Enterprises

  • Cheng Jin

Part of the Palgrave Studies in Economic History book series (PEHS)

Table of contents

About this book


This book provides a historical economic analysis of two key issues relating to township and village enterprise (TVE) development in China. Firstly, the nature of the evolving relationship between TVEs and local government; in particular how TVE entrepreneurs have used institutionalized power to secure the political influence needed to defend their financial independence. Secondly, the relationship between TVEs and state-owned enterprises (SOEs), and the role of SOEs in China’s economic transition.

This study highlights the importance of the role of SOEs in the “dual-track pricing system” and its impact on other parts of the economy. Township and village enterprises were key to China's success in the late twentieth century, but have more or less disappeared as an entity over the past decade or so. By measuring the structural difference of the SOE sector before and after 1998–2003 SOE reform, Jin explains their fast catch-up in productivity since the mid-1990s, as well as the r

elative decline of TVE productivity.


Contemporary Chinese economy Political Economics TVEs Economic Transition Economic duality Microeconomic theory Economic reform Organisational change Commune-Brigade Enterprises (CBEs) Decentralisation and liberalisation Pattern classification Property rights State-Owned Enterprises (SOEs) Dual-track System State Monopoly Gongxiaoyuan Economic environment Principle-agent model based approach Chinese Township and Village Enterprises Township and Village Enterprises

Authors and affiliations

  • Cheng Jin
    • 1
  1. 1.South China University of TechnologyGuangdongChina

Bibliographic information

Industry Sectors
Finance, Business & Banking