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TVEs and Poverty Alleviation—How Did They Do It?

In: China's Pathways to Prosperity

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  • Jun Fu

    (Peking University)

Abstract

It is often said today that the private sector or rather the non-state sector in China contributes 50% in tax, 60% in GDP, 70% in innovation, 80% in exports, and 90% in terms of number of firms to the Chinese economy. But much of the origin of these private firms can be traced back to TVEs (township and village enterprises) that operated at and below the county-level in China, where over 80% of Chinese population had lived before the reform era. So the main “battle field” of Chinese-style industrialization took place in rural rather than urban areas. Surprised? Why were these “rural industrial firms” able to grow rapidly in an evolving context of “seeming ambiguity” of property rights, and what impact did they have on poverty reduction? In what way did initial conditions and path-dependence make a difference in complex ecosystems in which TVEs survived and thrived? For a better understanding of Chinese-style industrialization and urbanization in an evolving institutional setting during an era of reforms, read TVEs.

Suggested Citation

  • Jun Fu, 2025. "TVEs and Poverty Alleviation—How Did They Do It?," Springer Books, in: China's Pathways to Prosperity, chapter 0, pages 71-97, Springer.
    • Handle: RePEc:spr:sprchp:978-981-96-2196-5_3
    DOI: 10.1007/978-981-96-2196-5_3
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