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Tinbergen Institute Discussion Paper No. 01-072/1
Tinbergen Institute, Amsterdam and Rotterdam
The purpose of this paper is to explain the relationship between economic performance and labourmanoeuvrability of township-village enterprises in the Jiangsu province, China. We start with a generaloverview of the development in the Chinese economy and the functioning of labour markets. Next, weperform a statistical analysis on economic performance and labour market behaviour based on a sampleof 103 enterprises. The flexibility to fire employees turns out to have a considerable impact on growth inadded value of the enterprises, whereas hiring flexibility appears to have negligible effects.
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Working Paper

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