Abstract

 Township and Village Enterprises (TVEs) performed an important role during China’s rapid economic development. Based on a review of the recent literature on these “engines of growth,” this study characterizes TVEs and their contribution to China’s development trajectory. It draws attention to institutions that are key to explaining TVEs, including responsibility contracts and organizational structure. It concludes that the paradigmatic experiences of TVEs have played an important role in terms of employment and export generation which contributed to China’s sustained levels of economic growth and development.

JEL Classification: O18, P32, P21.