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The selective mechanism for the Township-Village Enterprises

JIA Xi-jin (Institute of Sociology and Anthropology,Peiking University,Beijing 100871,China)  
The Township Village Enterprises(TVEs) play an important role in the rural ecomony after China's ecomomic reform,but challege the Property Right theory.The TVEs development is a result of the special institutional environment of China,such is the “possession”form of enterprises,the adaptive police,the relationship between performance of the enterprises and achievements of the government ,the acquaintanceship relation society,ect.Enterprises developped under such invironment can make great achivements for some time,but in an opportunistic way,they had no explicit property rights,were short of a steady expectation,and had to make changes with the changed policy.These problems will appear in their futhur development toward the market economy.This shows the importance of institutions in the performance of the enterprises in a long term.
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