Changes of Institution and Direction of the Development of Village Town Collective Enterprises

The appearance of the village town collective enterprise is determined by such economic systems as collective ownership and Household Contract System of Responsibility Linked to Production, and influenced by such political systems as people' s commune and Dual Household Registration System. The irregular system of the traditional society has positive effects on the choice of enterprise proprietors. During the course of development, the village town collective enterprises have gradually formed some "interest groups", the contrast of strengths between which has determined that the village town collective enterprise will trend towards non-nationalization.