This book provides a historical economic analysis of two key issues relating to township and village enterprise (TVE) development in China. Firstly, the nature of the evolving relationship between TVEs and local government; in particular how TVE entrepreneurs have used institutionalized power to secure the political influence needed to defend their financial independence. Secondly, the relationship between TVEs and state-owned enterprises (SOEs), and the role of SOEs in Chinaâs economic transition. This study highlights the importance of the role of SOEs in the âdual-track pricing systemâ and its impact on other parts of the economy. Township and village enterprises were key to China's success in the late twentieth century, but have more or less disappeared as an entity over the past decade or so. By measuring the structural difference of the SOE sector before and after 1998â2003 SOE reform, Jin explains their fast catch-up in productivity since the mid-1990s, as well as the relative decline of TVE productivity.
