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The Determinants of Export Performance of China's Township-Village Enterprises

Changqi Wu () and Leonard K. Cheng

LICOS Discussion Papers from LICOS - Centre for Institutions and Economic Performance, KU Leuven

Abstract: The rapid export growth of China's township-village enterprises (TVEs) has not been well understood and explained. Using a simple analytical model and exploring a unique dataset on China's TVEs, we investigate the determinants of TVEs' export performance as measured by export intensity. We _nd that TVEs'export performance is negatively related to the unit labour cost and positively related to the proportion of foreign capital in TVEs' new capital investment. Our results show that transaction costs hinder TVEs' export and the government's _nancial support has a positive, although limited, impact on TVEs' export performance.

Keywords: Export Performance; township-village enterprises; China (search for similar items in EconPapers)
JEL-codes: F14 O18 (search for similar items in EconPapers)
Pages: 21 pages
Date: 1999
New Economics Papers: this item is included in nep-dev and nep-mfd
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