Productivity Effects of TVE Privatization

Tetsushi Sonobe and Keijiro Otsuka

in Governance, Regulation, and Privatization in the Asia-Pacific Region

Published by University of Chicago Press

Published in print March 2004 | ISBN: 9780226386799
Published online February 2013 | e-ISBN: 9780226386966 | DOI:
Productivity Effects of TVE Privatization

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Until the 1980s, China's economic growth had been led by publicly-owned township- and village-run enterprises (TVREs). In the 1990s, however, the private sector emerged as the leading economic sector in China. This chapter examines the effects of TVE privatization. If recent privatization resulted in improved production efficiency, then why did it not take place earlier? The chapter also considers why TVREs prospered in Jiangsu in the 1980s. The main hypotheses are: local government intervention in the management of TVEs became less productive in the 1990s due to the declining importance of SOEs for the operation of TVEs; and recent privatization improved the production efficiency of TVEs without sacrificing marketing efficiency. Two commentaries are included at the end of the chapter.

Keywords: township- and village-run enterprises; state-owned enterprises; privatization; production efficiency

Chapter.  7843 words. 

Subjects: Business and Management

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