Study On The Regional Difference Of TVEs

Most countries attach much importance to Regional Difference because too big difference not only challenges social equity and justness but also does harm on social stabilization. The 11^th Five-year Programming of China has definitely pointed out that we should encourage the East to develop firstly, accelerate the Center to grow up, advance the West to exploit and stir the old industrial base in Northeast, so as to hasten Regional Harmonious Development. However, the Regional Difference in Township and Village Enterprises (TVEs) has evidently influenced the difference in rural areas and the difference between the city and the countryside. Therefore, it is very important for hastening Regional Harmonious Development, making overall plans and taking all factors into consideration between the city and the countryside and promoting whole country's economic and social harmonious development to study on the Regional Difference in TVEs and search for the mechanism and scientific countermeasures to reduce their difference or keep the difference within limits.There are three aspects in Regional Difference of TVEs: 1 .Degree of the difference, what trend it will appear in the near future. 2. Structure of the difference, whether the difference in industries and in regions is equal to the total difference or not. 3. Reasons for the difference, how to try our best to reduce the difference. Economic and Social Contributions of TVEs since Reform and Open Policy and their backgrounds are introduced. On this base, firstly, timing and spacing characteristic of the Regional Difference in TVEs is analyzed detailedly by means of Gini Index, Weighed Coefficient of Variation, STDEV, Value be Apart from Average and some other calculating methods. Results show that Absolute Difference in TVEs has enlarged since Reform and Open Policy, development of TVEs in the East has been speedier than that of the West, Relative Difference has been fluctuant phase by phase, Relative Difference has enlarged except for three phases of 1984～1987, 1994～1995, 1998～1999. We discover from deep study of the Regional Difference that enlargement of the Absolute Difference is directly related to the quick development of TVEs and that reduction of the Relative Difference is correlated to the national Micro-Economic Policies.In order to explore the structure of Regional Difference in TVEs, regional and industrial difference has been decomposed to TVEs' Regional Difference using Entropy Index and Gini Index. We find difference in the Secondary Industry is the biggest in three industries and difference among East, Center and West is obviously larger than its inner difference. Difference in the Secondary Industry and in the Tertiary Industry is enlarging year by year, difference among and within regions is also becoming bigger and bigger, which directly hastens the expanding Regional Difference in recent years.We analysis the reasons for Regional Difference in TVEs through two angles of view (inside and outside) by means of empirical analysis and case study. Results show from the enterprise's inner point of view, input factors such as labor, medium input and capital are all influenced the developing difference of TVEs. Their contribution shares order from big to small is Total Factor Productivity, medium input, capital and labor. The influence from Total Factor Productivity on the development difference of TVEs is gradually becoming bigger and bigger. Development of TVEs in the East depends on Total Factor Productivity, development of TVEs in the Center depends on capital, and development of TVEs in the West depends on medium input. But from the enterprise's outer point of view, enlargement of Regional Difference in TVEs is closely related to enterprises' background (including economic base, geographical condition, social surrounding, promoting policy), property right reform, foreign investment, developing pattern and service system.Furthermore, we point out on the basis of above results that the Absolute Difference of TVEs in China will be enlarged in the near future. But its Relative Difference will be reduced through the practice of many kinds of Regional Harmonious Development Policies in China. Then, we put forward some inferences to promoting TVEs' Regional Harmonious Development or hold back the trend of its enhancing Regional Difference, such as attaching importance to the Secondary Industry and the Tertiary Industry, mainly attacking difference among regions, focusing the scientific and technologic innovative abilities of TVEs, speeding the market reform of input factors and constructing service system, and booming the form of continuable development mechanism for TVEs.