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Article Information:
Title:
Labour manoeuvrability and economic performance: A test on township village enterprises in China
Author(s):
Eelco Modderman, Cees Gorter, Jasper Dalhuisen, Peter Nijkamp
Journal:
International Journal of Social Economics
Year:
2007
Volume:
34
Issue:
4
Page:
220 - 236
ISSN:
0306-8293
DOI:
10.1108/03068290710734190
Publisher:
Emerald Group Publishing Limited
Document Access:
Abstract:
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.
Keywords:
China, Economic performance, Labour efficiency, Labour mobility, Small enterprises
Article Type:
Research paper