Abstract
The township-village enterprise (TVE) in China is owned by local citizens and controlled by the township-village government (TVG). The TVE′s residual benefits are shared among citizens and TVG officials. This ownership structure can be viewed as the solution to the central government′s problem of improving citizens′ welfare subject to the constraints that the current political system be preserved and that local agents be provided with incentives. The control right is given to the TVG because ordinary citizens cannot provide security and access to resources that are critical for the success of the TVE. Nominal ownership is given to the citizens to guarantee that most benefits will be retained locally. To prevent the TVG from abusing its power, explicit distributional rules are made by the center. J. Comp. Econom., December 1994, 19(3), pp. 434-452. Department of Finance and Industrial Relations Center, Carlson School of Management, University of Minnesota - Twin Cities, Minneapolis, Minnesota 55455.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
