Labour manoeuvrability and economic performance

Eelco Modderman, Cees Gorter, Jasper Dalhuisen and Peter Nijkamp

International Journal of Social Economics, 2007, vol. 34, issue 4, 220-236

Abstract: Purpose - The aim of this paper is to explain the relationship between economic performance and labour manoeuvrability of township‐village enterprises in the Jiangsu province, People's Republic of China. Design/methodology/approach - After a concise general overview of recent economic developments in the Chinese economy and the functioning of labour markets, a statistical analysis was performed on economic performance and labour market conditions based on a sample of 103 enterprises in the area considered. Findings - The analysis shows that the flexibility to fire employees has a considerable impact on the rise in added value of the enterprises, whereas hiring flexibility appears to have negligible effects. Research limitations/implications - Although the paper has a limited scope related to one Chinese province, it seems plausible that the results – a positive economic effect of deregulation – have a more general validity, but this would call for a broader comparative study across sectors and regions. Originality/value - The paper thus offers a novel contribution to a better understanding of the economic performance after the fast changes in the Chinese economy.

Keywords: China; Small enterprises; Labour efficiency; Labour mobility; Economic performance (search for similar items in EconPapers)
Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijsepp:v:34:y:2007:i:4:p:220-236

DOI: 10.1108/03068290710734190

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