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Communal Duality: Agricultural Subsidies From Tves

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  • GUANZHONG JAMES WEN
  • GENE HSIN CHANG

Abstract

The policy of subsidizing agriculture with profits made by township and village enterprises has played an important role in maintaining stability and accelerating balanced economic growth in the Chinese rural areas. It represents an interesting subject in the literature of development economics for two reasons. First, the policy started at a very early stage of industrialization. Second, the policy has been carried out often voluntarily at the community level rather than at the state level. This paper examines the origin and rationales of such a policy and finds that the policy cannot be understood unless we look into a special institutional arrangement: China's unique communal duality. Study of the subject contributes significantly to an understanding of development economics. (JEL P5, Q0, O2)

Suggested Citation

  • Guanzhong James Wen & Gene Hsin Chang, 1999. "Communal Duality: Agricultural Subsidies From Tves," Contemporary Economic Policy, Western Economic Association International, vol. 17(1), pages 79-86, January.
    • Handle: RePEc:bla:coecpo:v:17:y:1999:i:1:p:79-86
    DOI: 10.1111/j.1465-7287.1999.tb00665.x
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    References listed on IDEAS

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    1. Richard A. Posner, 1971. "Taxation by Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 22-50, Spring.
    2. Martin L. Weitzman & Chenggang Xu, 1997. "Chinese Township-Village Enterprises as Vaguely Defined Cooperatives," International Economic Association Series, in: John E. Roemer (ed.), Property Relations, Incentives and Welfare, chapter 12, pages 326-355, Palgrave Macmillan.
    3. Putterman, Louis, 1992. "Dualism and Reform in China," Economic Development and Cultural Change, University of Chicago Press, vol. 40(3), pages 467-493, April.
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    More about this item

    JEL classification:

    • P5 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy

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