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Small Business Economics

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01.06.2014

Regional institutional development, political connections, and entrepreneurial performance in China’s transition economy

verfasst von: Wubiao Zhou

Erschienen in: Small Business Economics | Ausgabe 1/2014

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Abstract

While previous research emphasizes the role of political connections in facilitating entrepreneurial performance during China’s early reform period (1978–1999), this study argues that regional institutions were increasingly conducive to entrepreneurial activities and, thus, also played a key role in China’s entrepreneurial success during that period. The purpose of this study is twofold. First, it aims to demonstrate how regional institutional development facilitated entrepreneurial performance in China. Second, it aims to understand how formal institutional development among Chinese regions affected the role of political connections. Using a two-level hierarchical dataset on Chinese private enterprises, this study finds that not only legal protection of property rights but also the development of market systems mattered for entrepreneurial performance. In addition, it shows that political connections played a diminishing role during regional institutional development in China.

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Titel: Regional institutional development, political connections, and entrepreneurial performance in China’s transition economy
verfasst von: Wubiao Zhou
Publikationsdatum: 01.06.2014
Verlag: Springer US
Erschienen in: Small Business Economics / Ausgabe 1/2014
Print ISSN: 0921-898X
Elektronische ISSN: 1573-0913
DOI: https://doi.org/10.1007/s11187-013-9527-3

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