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Anticipatory Ownership Reform Driven by Competition: China' Township-Village and Private Enterprises in the 1990s

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  • Laixiang Sun

    (International Institute for Applied Systems Analysis, Laxenburg, Austria and United Nations University-WIDER, Helsinki, Finland)

Abstract

Since 1992, China's small and medium-sized enterprises (SMEs) have conducted a series of radical and successful restructuring in their ownership and governance arrangements. This paper focuses on the ownership restructure of township-village enterprises (TVEs) and private-household enterprises in the 1990s and examines the incentive-based reasons for the anticipatory restructuring in the absence of crisis in these two sectors. It highlights how market and inter-jurisdictional competitions have induced ownership reforms and how the organization of government matters in providing government itself with incentives for reform. It also explores the implications of China's SME ownership evolution for SME development in Russia and other former Soviet Union economies. Comparative Economic Studies (2000) 42, 49–75; doi:10.1057/ces.2000.15

Suggested Citation

  • Laixiang Sun, 2000. "Anticipatory Ownership Reform Driven by Competition: China' Township-Village and Private Enterprises in the 1990s," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 42(3), pages 49-75, September.
    • Handle: RePEc:pal:compes:v:42:y:2000:i:3:p:49-75
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    Cited by:

    1. Da Teng & Douglas B. Fuller & Chengchun Li, 2018. "Institutional change and corporate governance diversity in China’s SOEs," Asia Pacific Business Review, Taylor & Francis Journals, vol. 24(3), pages 273-293, May.
    2. Xia, Jun & Li, Shaomin & Long, Cheryl, 2009. "The Transformation of Collectively Owned Enterprises and its Outcomes in China, 2001-05," World Development, Elsevier, vol. 37(10), pages 1651-1662, October.
    3. Sun, Laixiang, 2002. "Fading out of local government ownership: recent ownership reform in China's township and village enterprises," Economic Systems, Elsevier, vol. 26(3), pages 249-269, September.
    4. Zhong Qin & Wenli Cheng, 2012. "Evolving Ownership Structures in Private Enterprises in China: the Case of Ningbo," Monash Economics Working Papers 12-13, Monash University, Department of Economics.
    5. Qin, Zhong, 2011. "Models of trust-sharing in Chinese private enterprises," Economic Modelling, Elsevier, vol. 28(3), pages 1017-1029, May.

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