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Labour Manoeuvrability and Economic Performance in Township-Village Enterprises: The Case of China

Author

Listed:
  • Eelco Modderman
  • Cees Gorter

    (Vrije Universiteit Amsterdam)

  • Jasper Dalhuisen

    (Vrije Universiteit Amsterdam)

  • Peter Nijkamp

    (Vrije Universiteit Amsterdam)

Abstract

The purpose of this paper is to explain the relationship between economic performance and labourmanoeuvrability of township-village enterprises in the Jiangsu province, China. We start with a generaloverview of the development in the Chinese economy and the functioning of labour markets. Next, weperform a statistical analysis on economic performance and labour market behaviour based on a sampleof 103 enterprises. The flexibility to fire employees turns out to have a considerable impact on growth inadded value of the enterprises, whereas hiring flexibility appears to have negligible effects.

Suggested Citation

  • Eelco Modderman & Cees Gorter & Jasper Dalhuisen & Peter Nijkamp, 2001. "Labour Manoeuvrability and Economic Performance in Township-Village Enterprises: The Case of China," Tinbergen Institute Discussion Papers 01-072/1, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20010072
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    References listed on IDEAS

    as
    1. Putterman, Louis, 1997. "On the past and future of china's township and village-owned enterprises," World Development, Elsevier, vol. 25(10), pages 1639-1655, October.
    2. Martin L. Weitzman & Chenggang Xu, 1997. "Chinese Township-Village Enterprises as Vaguely Defined Cooperatives," International Economic Association Series, in: John E. Roemer (ed.), Property Relations, Incentives and Welfare, chapter 12, pages 326-355, Palgrave Macmillan.
    3. van der Meulen Rodgers, Yana & Nataraj, Sita, 1999. "Labor Market Flexibility in East Asia: Lessons from Taiwan," Economic Development and Cultural Change, University of Chicago Press, vol. 48(1), pages 51-69, October.
    4. Dapeng Hu & Masahisa Fujita, 2001. "Regional disparity in China 1985-1994: The effects of globalization and economic liberalization," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 35(1), pages 3-37.
    5. Chang Chun & Wang Yijiang, 1994. "The Nature of the Township-Village Enterprise," Journal of Comparative Economics, Elsevier, vol. 19(3), pages 434-452, December.
    6. Harry X Wu & Li Zhou, 1996. "Research on Rural-to-Urban Labour Migration in the Post-Reform China: A Survey," Chinese Economies Research Centre (CERC) Working Papers 1996-04, University of Adelaide, Chinese Economies Research Centre.
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