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Township‐village enterprises, local governments and rural communities: the Chinese village as a firm during economic transition1

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  • Xiaolin Pei

Abstract

The nature of TVEs and the real functions of township‐village governments are rooted in the Chinese township‐village organization. The management of common property in a village group or a rural community is quite different from management in a situation where the boundaries of common property are unclear. Before economic reform, the cooperative elements or interspecific resources, such as low information costs, kinship ties, trust and cooperative spirit belonged in common to all villagers, yet cooperation was absent because the Chinese state appropriated the collective benefits. During the course of reform, the link between village official and state is being gradually broken down and the official is returning to his own village organization. The original interspecific resources of villagers and the identity of the village leader as government official are institutionalized as specific contractual relations in China's reform circumstances. The Chinese village behaves as a firm‐type organization and the collective benefits can be internalized during the economic transition.

Suggested Citation

  • Xiaolin Pei, 1996. "Township‐village enterprises, local governments and rural communities: the Chinese village as a firm during economic transition1," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(1), pages 43-66, May.
    • Handle: RePEc:bla:etrans:v:4:y:1996:i:1:p:43-66
    DOI: 10.1111/j.1468-0351.1996.tb00161.x
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    Cited by:

    1. Lanchih Po, 2008. "Redefining Rural Collectives in China: Land Conversion and the Emergence of Rural Shareholding Co-operatives," Urban Studies, Urban Studies Journal Limited, vol. 45(8), pages 1603-1623, July.
    2. Hare, Denise & West, Loraine A., 1999. "Spatial Patterns in China's Rural Industrial Growth and Prospects for the Alleviation of Regional Income Inequality," Journal of Comparative Economics, Elsevier, vol. 27(3), pages 475-497, September.

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