State ownership,political connections and entry barriers: evidence from China |
| |
Authors: | Meijie Yao Ciheng Song |
| |
Institution: | 1. Chongqing University, Chongqing, China;2. Rongzhi College of Chongqing Technology and Business University, Chongqing, China |
| |
Abstract: | Private enterprises may encounter high industrial barriers in China because of government administrative restrictions. We analyse the effect of partial state ownership on a privately controlled company’s participation in industries with state-imposed barriers. The results indicate that state ownership in privately controlled enterprises has a significantly positive effect on participation in high barrier industries. After controlling for partial state ownership, we find that personal political identity of entrepreneurs, a previously investigated dimension of political connections, becomes less important in explaining private enterprises’ participation in barrier industries. We also find the effect of state ownership on access to barrier industries will become weaker when local economy is more developed. |
| |
Keywords: | State ownership political connections industry barrier private enterprises |
|
|