ABSTRACT
In the last chapter, I have shown the changing patterns of regional development in Jiangsu. In this chapter, I analyze and synthesize the factors underlying these changes. As I have pointed out in the last chapter, previous analyses tend to attribute the development of Jiangsu, especially Sunan, to the success of township and village enterprises (TVEs). In this book, I have argued for the analysis of the central state, local states and agents, and global forces for a better understanding of regional development and inequality in China. While TVEs have indeed played important roles in development of Sunan, I argue that multiple mechanisms, including state policy, local initiatives and factors, and global forces, are important forces underlying the growth of TVEs and regional development in Jiangsu. My analysis in this chapter emphasizes fiscal systems, investment distribution, ownership restructuring, and foreign direct investment (FDI).
