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TVEs: Theories and Methodology

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

Author

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  • Cheng Jin

    (South China University of Technology
    East Asian Institute)

Abstract

Privatisation has been spreading rapidly throughout China. A core question about this economic transition is how ownership can be defined more usefully and more accurately in terms of best-practice institutions (Qian 2003). Moreover, some critical questions remain about conventional property rights theory. Two of these are: (a) why did some of the so-called collectively owned enterprises, especially township and village enterprises (TVEs, also known as TVPs [township, village and private enterprises] in some early works—for example, Byrd and Lin (1990)), perform much better than other non-private sectors in China in the early reform days (Li 1996)? (b) Under what conditions can TVEs achieve economic success without clearly defined property rights—bearing in mind that both TVE’s output and scale experienced mushrooming growth during the 1980s and early 1990s (Qian 2003; Naughton 1994, 2006; Huang 2008)? Answers to these questions are likely to determine the answer to a more specific question: does an optimal transition path exist (Tian 2000)?

Suggested Citation

  • Cheng Jin, 2017. "TVEs: Theories and Methodology," Palgrave Studies in Economic History, in: An Economic Analysis of the Rise and Decline of Chinese Township and Village Enterprises, chapter 2, pages 19-46, Palgrave Macmillan.
    • Handle: RePEc:pal:palscp:978-3-319-59770-6_2
    DOI: 10.1007/978-3-319-59770-6_2
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