NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Keijiro Otsuka

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NBER Working Papers and Publications

January 2004Productivity Effects of TVE Privatization: The Case Study of Garment and Metal-Casting Enterprises in the Greater Yangtze River Region
with Tetsushi Sonobe
in Governance, Regulation, and Privatization in the Asia-Pacific Region, NBER East Asia Seminar on Economics, Volume 12, Takatoshi Ito and Anne O. Krueger, editors
April 2003Productivity Effects of TVE Privatization: The Case Study of Garment and Metal Casting Enterprises in the Greater Yangtze River Region
with Tetsushi Sonobe: w9621
While it is by now well known that the privatization of township- and village-run enterprises (TVREs) has been rapidly and widely taking place in China, it is much less known whether and to what extent privatization has improved resource allocation and productivity. As a first step toward the fuller understanding of the effect of privatization, this study undertakes case studies of garment and casting enterprises in the Greater Yantgze River Region, where TVREs led miraculous economic growth in the 1980s. Our empirical results indicate that productivity was significantly enhanced by the recent privatization with time lag of a few years.

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