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Kinship Networks, Village Industry, and Max Weber

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Abstract:

Max Weber had observed, nearly a century ago, that the strong lineage system inhibited the emergence of rational capitalistic business organization in China. Recently Martin White reevaluated the Weberian thesis from the perspective of social capita theory and argued that, rather than an obstacle, Chinese familism (including kinship ties) may have facilitated the economic growth in China over the last two decades. This paper attempts to empirically test the competing hypotheses by focusing on the relationship between kinship networks and the development of rural enterprises. Poisson regressions of the count of enterprises show that kinship networks, measured by proportion of most common surnames, significantly increase the number of rural enterprises, especially the number of private enterprises in Chinese villages. Firm-level productivity analysis, however, does not find any correlation between kinship networks and efficiency. I conclude that the lineage system facilitated founding of private enterprises by providing resources that were not available through formal channels; but the efficient operation of enterprises depends more on rational management and formal institutional support.

Most Common Document Word Stems:

villag (75), kinship (74), enterpris (72), rural (61), network (60), industri (54), china (50), collect (50), econom (50), chines (50), organ (43), famili (41), social (41), privat (38), ration (28), capit (28), weber (25), tie (23), develop (22), log (22), labor (21),

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Kinship network, rural industry, China, Weber
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Peng, Yusheng. "Kinship Networks, Village Industry, and Max Weber" Paper presented at the annual meeting of the American Sociological Association, Hilton San Francisco & Renaissance Parc 55 Hotel, San Francisco, CA,, Aug 14, 2004 <Not Available>. 2009-05-26 <http://www.allacademic.com/meta/p109066_index.html>

APA Citation:

Peng, Y. , 2004-08-14 "Kinship Networks, Village Industry, and Max Weber" Paper presented at the annual meeting of the American Sociological Association, Hilton San Francisco & Renaissance Parc 55 Hotel, San Francisco, CA, Online <.PDF>. 2009-05-26 from http://www.allacademic.com/meta/p109066_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: Max Weber had observed, nearly a century ago, that the strong lineage system inhibited the emergence of rational capitalistic business organization in China. Recently Martin White reevaluated the Weberian thesis from the perspective of social capita theory and argued that, rather than an obstacle, Chinese familism (including kinship ties) may have facilitated the economic growth in China over the last two decades. This paper attempts to empirically test the competing hypotheses by focusing on the relationship between kinship networks and the development of rural enterprises. Poisson regressions of the count of enterprises show that kinship networks, measured by proportion of most common surnames, significantly increase the number of rural enterprises, especially the number of private enterprises in Chinese villages. Firm-level productivity analysis, however, does not find any correlation between kinship networks and efficiency. I conclude that the lineage system facilitated founding of private enterprises by providing resources that were not available through formal channels; but the efficient operation of enterprises depends more on rational management and formal institutional support.

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Document Type: .PDF
Page count: 18
Word count: 7326
Text sample:
Preliminary draft January 2003 Please do not cite without permission KINSHIP NETWORKS VILLAGE INDUSTRY AND MAX WEBER* Yusheng PENG The Chinese University of Hong Kong Abstract Max Weber had observed nearly a century ago that the strong lineage system inhibited the emergence of rational capitalistic business organization in China. Recently Martin White reevaluated the Weberian thesis from the perspective of social capita theory and argued that rather than an obstacle Chinese familism (including kinship ties) may have facilitated the
0.391*** 0.484*** (4.09) (4.60) Restriction†† -29.5*** -24.8* (-3.28) (-2.51) Adjusted R-Square 0.473 0.460 Notes: † Figures in parentheses are t-values; asterisks * and ** indicate significance at p<0.05 and 0.01 two-tailed. †† Restriction refers to the constant return to scale restriction i.e. the coefficients of log capital labor and wage bill sum up to unity. Its significance test is based on Beta distribution. 18


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