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Ownership And Institutions: Evidence From Rural China

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  • Jin, Hehui
  • Qian, Yingyi

Abstract

We study empirically the relationship between ownership of firms and institutional environment in transition and developing economies by examining China's rural non-farm sector, which consists of both private enterprises and community government-run enterprises (known as township-village enterprises, or TVEs). We found that all the variables related to the legacy of planning favor TVE ownership, and all the variables related to market-oriented reforms and market development encourage private ownership. We also found that TVEs help increase the revenue shares of state and community governments, as well as rural non-farm employment and income. However, their effect on rural income is insignificant given the level of non-farm employment.

Suggested Citation

  • Jin, Hehui & Qian, Yingyi, 1997. "Ownership And Institutions: Evidence From Rural China," Harvard Institute for International Development (HIID) Papers 294396, Harvard University, Kennedy School of Government.
    • Handle: RePEc:ags:hariid:294396
    DOI: 10.22004/ag.econ.294396
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    Cited by:

    1. Che, Jiahua & Qian, Yingyi, 1998. "Institutional Environment, Community Government, and Corporate Governance: Understanding China's Township-Village Enterprises," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 14(1), pages 1-23, April.
    2. Boudewijn Bouckaert, 2007. "Bureaupreneurs in China: we did it our way," European Journal of Law and Economics, Springer, vol. 23(2), pages 169-195, April.
    3. Zhou, Huizhong, 2000. "Fiscal decentralization and the development of the tobacco industry in China," China Economic Review, Elsevier, vol. 11(2), pages 114-133, December.

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