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The emergence of the private entrepreneur in reform era China: re-birth of an earlier tradition, or a more recent product of development and change?

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  • Andrew Atherton
  • Alex Newman

Abstract

A private sector that now dominates economic activity has emerged in China since 1978, even though many of the essential institutions for market competition have been lacking or are under-developed. We find that there is no evidence that this upsurge of entrepreneurship is a re-birth of an earlier tradition. Instead, the dynamics of entrepreneurial emergence can be attributed to reforms and institutional changes that have occurred since 1949, both before and after the introduction of economic reforms in late 1978. We find that these institutional changes have been evolutionary, adapting to, as well as shaping, emerging forms of economic activity, including entrepreneurship. Our conclusion is that these dynamics of adaptation and evolution produce ‘rule ambiguities’ within the institutional framework that create opportunities for entrepreneurs as well as making these opportunities vulnerable to further institutional change.

Suggested Citation

  • Andrew Atherton & Alex Newman, 2016. "The emergence of the private entrepreneur in reform era China: re-birth of an earlier tradition, or a more recent product of development and change?," Business History, Taylor & Francis Journals, vol. 58(3), pages 319-344, April.
    • Handle: RePEc:taf:bushst:v:58:y:2016:i:3:p:319-344
    DOI: 10.1080/00076791.2015.1122702
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    1. Martin L. Weitzman & Chenggang Xu, 1997. "Chinese Township-Village Enterprises as Vaguely Defined Cooperatives," International Economic Association Series, in: John E. Roemer (ed.), Property Relations, Incentives and Welfare, chapter 12, pages 326-355, Palgrave Macmillan.
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    Cited by:

    1. Zheng, Liang & Zhao, Zhong, 2017. "What drives spatial clusters of entrepreneurship in China? Evidence from economic census data," China Economic Review, Elsevier, vol. 46(C), pages 229-248.
    2. Weiqi Dai & Mingqing Liao & Qiao Lin & Jincai Dong, 2022. "Does entrepreneurs’ proactive attention to government policies matter?," Asian Business & Management, Palgrave Macmillan, vol. 21(3), pages 396-431, July.
    3. Bylund, Per L. & McCaffrey, Matthew, 2017. "A theory of entrepreneurship and institutional uncertainty," Journal of Business Venturing, Elsevier, vol. 32(5), pages 461-475.
    4. Li Yaokuang & Wang Jing & Long Dan, 2019. "How do Institutions Inspire Ambitions? Differentiating Institutional Effects on Entrepreneurial Growth Intentions: Evidence from China," Entrepreneurship Research Journal, De Gruyter, vol. 9(4), pages 1-19, October.

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