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COMMUNAL DUALITY: AGRICULTURAL SUBSIDIES FROM TVES
Author(s) -
WEN GUANZHONG JAMES,
CHANG GENE HSIN
Publication year - 1999
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.1999.tb00665.x
Subject(s) - subsidy , industrialisation , economics , china , duality (order theory) , state (computer science) , agricultural policy , agriculture , subject (documents) , economic system , public economics , market economy , political science , mathematics , discrete mathematics , algorithm , library science , computer science , law , ecology , biology
The policy of subsidizing agriculture with profits made by township and village enterprises has played an important role in maintaining stability and accelerating balanced economic growth in the Chinese rural areas. It represents an interesting subject in the literature of development economics for two reasons. First, the policy started at a very early stage of industrialization. Second, the policy has been carried out often voluntarily at the community level rather than at the state level. This paper examines the origin and rationales of such a policy and finds that the policy cannot be understood unless we look into a special institutional arrangement: China's unique communal duality. Study of the subject contributes significantly to an understanding of development economics. ( JEL P5, Q0, O2)