Labour manoeuvrability and economic performance A test on township village enterprises in China

• Published in: International journal of social economics Vol. 34; no. 4; pp. 220 - 236
• Main Authors: Modderman, Eelco, Gorter, Cees, Dalhuisen, Jasper, Nijkamp, Peter
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Group Publishing Limited 01.01.2007
• Subjects: China; Correlation analysis; Deregulation; Economic change; Economic conditions; Economic policy; Efficiency; Emerging markets; Flexibility; Hiring; Households; Labor market; Labourers; Market economies; Private enterprise; Provinces; Recruitment; Rural areas; Small business; Statistical analysis; Studies; Workers; China
• ISSN: 0306-8293; 1758-6712
• DOI: 10.1108/03068290710734190

Purpose - The aim of this paper is to explain the relationship between economic performance and labour manoeuvrability of township-village enterprises in the Jiangsu province, People's Republic of China. Design/methodology/approach - After a concise general overview of recent economic developments in the Chinese economy and the functioning of labour markets, a statistical analysis was performed on economic performance and labour market conditions based on a sample of 103 enterprises in the area considered. Findings - The analysis shows that the flexibility to fire employees has a considerable impact on the rise in added value of the enterprises, whereas hiring flexibility appears to have negligible effects. Research limitations/implications - Although the paper has a limited scope related to one Chinese province, it seems plausible that the results - a positive economic effect of deregulation - have a more general validity, but this would call for a broader comparative study across sectors and regions. Originality/value - The paper thus offers a novel contribution to a better understanding of the economic performance after the fast changes in the Chinese economy.