Development and Internationalization of Chinese Township-Village Enterprises Chai Wook Chun and Eui-Hyun Choi

During the period between the establishment of People's Republic of China (1949) and the Third Plenum of the Chinese Communist Party's 11th Central Committee of 1978, the Chinese economy showed some signs of growth at least on the surface. The average annual growth rate between 1957 and 1978 was claim to be 4.4% and the growth rate of agricultural output was at 4%. However, these figures ate dubious as they come from central planning system forthermore, the government transferred the surplus from the agricultural sector to the heavy industry sector. This is well supported by the statistics - the annual consumption increases of the agricultural sector was only 1.4%.

It was the reform of 1978 that brought major change to the Chinese economy. As the government sought to modernize its economy, the socialist central planning system was overhauled to distribute power to local authorities and other new agricultural policies were introduced. As a consequence of the successful reform of agricultural sector, the income increases have allowed the farmers to invest in the non-agricultural sector with the labor surplus that came from improved efficiency. These surpluses naturally led to creation of the Township-Village Enterprises(TVEs).

The fast-growing TVEs acted as the engine of prosperity of peasant households of China during this period. A special focus on TVEs is warranted for a variety of reasons. First, the output of rural industries achieved phenomenal growth rates in the 1980s, and by the end of the decade this sector assumed a significant role not only in the rural economy, but also in the economy of the country as a whole. Employing about 12% of the rural labor force, these industries were accounting for over a third of the total rural output. TVEs thus become an important source of signigicant rural-urban migration and in view of the limitations on the growth of agriculture, the growth of income from TVEs and other enterprises become an engine of growth in rural income. Second, these industries played an important role in fostering the growth of agriculture(e.g. by providing funds for social investment in irrigation, facilitating farm mechanization and the use of fertilizers, etc.) and thus made valuable indirect contributions to the income of peasants.

This study focus on the performance of TVEs in the changing environment where it can be characterized by foreign trade, foreign direct investment(FDI) and overseas direct investment(ODI). The TVEs in coastal region and textile industry have played a major role in exports, while FDI has helped the TVEs to improve manufacturing and management technology. However, since the most part of FDI comes only from Hong Kong and Taiwan its role as an engine of development is limited.

The overseas direct investment(ODI) of TVEs is only at the beginning stages as foreign subsidiaries of TVEs are ODI by TVEs functioning as so rather than as manufacturing facilies. Despite the current status, ODI by TVEs has great potential for dynamic growth because of globally distributed overseas Chinese connection.

As the globalization of TVEs are at the beginning stage, interaction with Korean firms is not yet very active. Most of the Korean firms investing in China are seeking low wage and low rent and prefer direct investment rather than through joint ventures. Although the ties between TVEs and Korean firms are not get active, the close relationship with TVEs will be necessary in the near future and following are some suggestions for Korean firms. First, TVEs should be considered as a group of fast growing enterprises rather than small or medium firms of rural area. Second, it is necessary to have a close relationship with TVEs to facilitate business activities in China. Third, while cooperating with TVEs, it is important to consider local and market characteristics of the region where cooperating TVEs are located.

서언
국문요약

Ⅰ. 서론

Ⅱ. 향진기업의 발전과정과 농촌공업화
1. 전통적 사회주의경제의 전개와 농촌공업화
2. 경제개혁과 향진기업
3. 농촌 경제구조의 변화와 향진기업

Ⅲ. 향진기업의 발전과 농촌노동력 이동
1. 농촌 노동력의 이동 형태
2. 노동력의 산업간 이동
3. 향진기업의 고용창출

Ⅳ. 향진기업의 구조변화에 대한 분석
1. 생산요소투입의 변화
2. 鄕鎭企業이 전체 산업의 효율성에 미친 영향

V. 향진기업의 국제화 현황과 특징
1. 국제화 정의
2. 대외무역의 발전
3. 외국인직접투자의 유입
4. 대외진출

Ⅵ. 결론 및 시사점
1. 결론
2. 우리에 대한 시사점

參考文獻

부록 1. 韓國企業의 對鄕鎭企業 진출 사례
2. 鄕鎭企業法
3. 향진기업의 환경보호 강화에 관한 규정
4. 과잉노동력의 추계