Question

E. What were the Town and Village enterprises (TVE’s)? What types of things did they produce (list several) and how did their growth rates compare to the State Owned Enterprises (SOE’s)?

Answer 1

The township and villege enterprises are economic units which are collectively owned by local residents in rural areas of China

They produce several things like iron, steel,cement,chemical fertilizers, hydroelectrical power ,farm tools,tobacco,alcohol

Their growth rates were comparable to the State owned Enterprises

TVE's are found to be much more efficient than comparable SOE's

They are competitive in international markets

Their management responds to market prices

Their outward orientation have contributed to their productive efficiency

TVEs exhibit much better performance except in alcohol and tobacco industry than SOEs

These factors led to the better growth rate of TVs