ABSTRACT
This chapter discusses environment, organization, behavior, and future research needed to advance knowledge of China's nonstate enterprises. It discusses that unusual property rights situation of China's nonstate enterprises is that the Chinese culture is uniquely arranged in that there is no perceived need for clearly defined ownership and property rights in order for production and investment to be efficient. Weitzman and Xu propose a general approach to property rights theory based on a notion of cooperative culture. They argues that standard property rights theories, which are generally viewed as universal or culture-free, rest on an explicit or implicit assumption that all people are indiscriminately uncooperative. Dong, Bowles, and Ho report the impact of share ownership on employee attitudes in China's privatized rural industries, drawing on a survey administered in the provinces of Jiangsu and Shandong. Perotti, Sun, and Zou present a survey of the comparison between state-owned enterprises (SOE) and township-and-village enterprises (TVE) in China.
