External Profits, Property Game And Institutional Change

Sunan township-village enterprise has experienced constant change in property right from commune and brigades enterprise to individual-private or shareholding enterprise. Using Institutional Change Theory, the paper makes an deep analysis of property- right change in Sunan TVE in order to find internal reason for causing property-right change . the study is very important that it can provide theoretical support for deepening property reform in Sunan TVE.The paper defines the notion of property right etc. it describes property-right change and makes a summary. on this basis, it pays attention to the relationship among potential profit and property-right gaming and institution change. it establishes theoretical framework and uses it to explain property- right change in Sunan TVE.Why does Sunan TVE develop from commune and brigades enterprise to individual-private or shareholding enterprise ? the reason is as follows: in the course of planned economy moving to market economy, although Sunan TVE created miracle, which showed ambiguous property–right fit that circumstance, with improvement in market environment, to keep this status inevitably led to increase organizational cost. therefore Sunan community government and business operators innovated in property–right system with the limits of dominant ideology and Wu culture. from collective system to contracting and leasing system, although Sunan community government and business operators reallocated property–right, it didn't solve the problem of ambiguous property. from contracting and leasing system to joint stock and cooperation system, it solved it to some extent, but collective-stock was dominated in the stock structure, which made ambiguous property–right in exit. individual-private or shareholding institution has such characteristic as clear property–right,scientific decision, so it is certain that joint stock and cooperation system was substituted by individual-private or shareholding institution.