Regional deregulation and entrepreneurial growth in China's transition economy |
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Authors: | Wubiao Zhou |
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Institution: | 1. Division of Sociology, School of Humanities and Social Sciences, Nanyang Technological University , Singapore 637332, Singapore wbzhou@ntu.edu.sg |
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Abstract: | Despite a less favourable national institutional environment, the private entrepreneurial sector has developed rapidly in China's transition economy. To resolve this puzzle, this study argues that regional deregulation plays a significant role in China's entrepreneurial growth because it stimulates free markets and lifts predatory and discriminatory regulatory policies affecting entrepreneurship. I use provincial-level panel data (1998–2003) for hypothesis testing. The results, based on fixed effects estimation, suggest that deregulation indeed has a significantly positive effect on entrepreneurial growth within regions. In addition, this effect is found to be stronger in earlier years, as well as among less developed, inland regions. |
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Keywords: | entrepreneurship institutional environment regional deregulation China |
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