An Empirical Study On The China's Township Enterprises Impact On Rural Development

Development of township-village enterprises have existed for more than30years,township-village enterprises made outstanding contribution for the countryside, a lot ofvillages become quite well-off, such as huaxi, teng tou, nanjie village and so on. The ruralinfrastructure construction has been very close to the city level, some villages even haveexceeded the city level, the farmers’ living standard changed a lot and greatly improved.Many villages are poor, but these successful villages set good examples for other economicbackward countryside, the future of the countryside will be like the city.Township-enterprise play a large role in the countryside’s development,The paperfirstly showed the relationship between the township enterprises and the rural development.Township-enterprises went through the tortuous path, and had a huge success, which canbe seen the township enterprise’s development phase, development present situation, thesuccessful model, but the township enterprises now were faced with domestic and foreignmarket fierce competition. Furthermore, this paper made empirical analysis of theThrice Industrial of the township enterprises. The second industry of township enterprisesoccupied an absolutely dominant position in the rural areas. However, value added ratio ofsecondary industry in the Thrice Industrial was the lowest. As a saying goes, Withoutindustry, the rural economy could not be rich. Therefore many parts of rural areas needed arapid development of secondary industry, meanwhile should pay more attention to thequality of economic growth. The added value of third industry and employment showed anincreasing trend, which indicating the optimization of the industrial structure. Then thispaper used a VEC model to analyze the influence of township enterprises on per capita netincome, the promotion role of total profits of township enterprises and employment forrural per capita net income, and also through impulse response function for dynamicanalysis. Studies have shown that the total profits of township enterprises and employmentgrowth can effectively improve the per capita net income of farmers, and the promotionrole of the number of township enterprises to rural per capita net income is not significant,therefore, an increase of the number of township enterprises is not an effective way to raisefarmers’ per capita net of income for the current situation. Then through the compare oftownship enterprises of different regions, we can see an unbalanced development oftownship enterprises around China, and township enterprises of the eastern part weredeveloped, while middle and western township enterprises lagged far behind. There is a huge difference even among the developed eastern provinces. For example, Jiangsu andHebei Province has obvious disparity in township enterprises development. The Final partof my paper gave the conclusions and recommendations based on the above empiricalanalysis.