NIE and Enterprise Reform of Mainland China

• Main Authors: Cao, Hai-Tao, 曹海濤
• Other Authors: Diana H. Tsai
• Format: Others
• Language: zh-TW
• Published: 1999
• Online Access: http://ndltd.ncl.edu.tw/handle/44827242751691965115

碩士 === 國立中山大學 === 大陸研究所 === 87 === 　　　英文摘要 The township-village enterprises (TVEs) is a major driving force in the Chinese enterprise reform, What are the underlying reason for the success of the TVEs ? Why many analysts cannot show the clear evidence of market transition in Mainland China. The lack of a relevant integrated framework clearly hinders the research progress in this area. This study examine the development of the TVEs from the new institutional economics (NIE) perspective. We show the interaction between institutional environment and government structure, in that institutional environment have substantial impacts effect on government structure, in the meaning time, the evolving of the governance structure gradually change the institutional environment. This framework is applied to analyze the nature of the transition economy in Mainland China. The main purpose of this studying is to argue the TVEs to be best describe as a hybrid form in a dynamic market of the transition economy. The institutional environment in Mainland China is specified as weak market structures, poorly identified property rights, and institutional uncertainty (Nee, 1992). Imperfect institutional environment implies high transaction cost. TVEs, fall between SOEs and private enterprises and contain their own institutional logic, is a communal property of the local citizens and the town-village government (TVG). We demonstrate TVEs can reduce uncertainty and economize transaction cost by means of bilateral dependency between local governments and TVEs in gray market. On one hand, TVEs cooperate with local government and enjoy a transaction cost advantage over other governance structure ( e.g. SOEs, private enterprise ) ; on the other hand, TVEs can take advantage of their own merits of the marketized organization. Under the circumstance, TVEs make a great progress in Mainland China''s transition economy. Therefore, as a institutional arrangement, TVEs'' rapid increase is a response to the characteristics and limitations institutional environment in Mainland China. However, the institutional environment changes limits the progress of the TVEs. Local government involvement in TVEs has distorted TVEs'' efficiency and hampered its progress. Property rights reform is inevitable in Mainland China. Case study provided in this paper reveal that TVEs are carrying out property rights reform is the nature of gradually unifying control rights and residual claimants. Key Word: NIE、TVEs、institutional environment、bilateral dependency、 transaction cost、property rights、privatization、Mainland China