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Regional deregulation and entrepreneurial growth in China's transition economy

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  • Wubiao Zhou

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.

Suggested Citation

  • Wubiao Zhou, 2011. "Regional deregulation and entrepreneurial growth in China's transition economy," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 23(9-10), pages 853-876, December.
    • Handle: RePEc:taf:entreg:v:23:y:2011:i:9-10:p:853-876
    DOI: 10.1080/08985626.2011.577816
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    References listed on IDEAS

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    1. Yasheng Huang & Wenhua Di, 2004. "A Tale of Two Provinces: The Institutional Environment and Foreign Ownership in China," William Davidson Institute Working Papers Series 2004-667, William Davidson Institute at the University of Michigan.
    2. Barry Naughton, 2007. "The Chinese Economy: Transitions and Growth," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262640643, April.
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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. Zhou, Wubiao, 2013. "Political connections and entrepreneurial investment: Evidence from China's transition economy," Journal of Business Venturing, Elsevier, vol. 28(2), pages 299-315.
    3. Zhiyang Liu & Guixing Wu, 2022. "Gendered motives towards hybrid entrepreneurial intentions: Empirical evidence from China," International Studies of Economics, John Wiley & Sons, vol. 17(1), pages 36-64, June.
    4. Li, Changhong & Shi, Yulin & Wu, Cong & Wu, Zhenyu & Zheng, Li, 2016. "Policies of promoting entrepreneurship and Angel Investment: Evidence from China," Emerging Markets Review, Elsevier, vol. 29(C), pages 154-167.
    5. Zhai Qinghua & Su Jing & Ye Minghai & Xu Yuwen, 2019. "How Do Institutions Relate to Entrepreneurship: an Integrative Model," Entrepreneurship Research Journal, De Gruyter, vol. 9(2), pages 1-16, April.
    6. Feng Zhang & Haina Zhang & Geoffrey G. Bell, 2021. "Corporate religiosity and individual decision on conducting entrepreneurial activity: The contingent effects of institutional environments in China," Asia Pacific Journal of Management, Springer, vol. 38(3), pages 955-978, September.
    7. Weiqi Dai & Yang Liu & Mingqing Liao & Qiao Lin, 2018. "How does entrepreneurs’ socialist imprinting shape their opportunity selection in transition economies? Evidence from China’s privately owned enterprises," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 823-856, December.
    8. Ailing Liu & Xiaojun Ma & Meimei Zhou & Lichen Zeng & Jijian Lu, 2023. "Performance Model of Youth Entrepreneurship Platform in the Context of Common Wealth Returning to Hometown," Sustainability, MDPI, vol. 15(19), pages 1-18, October.
    9. Dai, Weiqi & Si, Steven, 2018. "Government policies and firms' entrepreneurial orientation: Strategic choice and institutional perspectives," Journal of Business Research, Elsevier, vol. 93(C), pages 23-36.
    10. Landström, Hans, 2020. "The Evolution of Entrepreneurship as a Scholarly Field," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 16(2), pages 65-243, January.
    11. Zhou, Wubiao, 2017. "Institutional environment, public-private hybrid forms, and entrepreneurial reinvestment in a transition economy," Journal of Business Venturing, Elsevier, vol. 32(2), pages 197-214.
    12. Zheng, Weiting & Ang, Siah Hwee & Singh, Kulwant, 2022. "The interface of market and nonmarket strategies: Political ties and strategic competitive actions," Journal of World Business, Elsevier, vol. 57(4).
    13. Amankwah-Amoah, Joseph & Zhang, Hongxu, 2015. "Business failure research," MPRA Paper 67848, University Library of Munich, Germany.

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