Localisation economies, intellectual property rights protection and entrepreneurship in China: a Bayesian analysis of multi-level spatial correlation

Xing Gao, Jing Meng, Yantao Ling, Maolin Liao and Mengqiu Cao

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Entrepreneurship is an important determinant of innovation and growth with an uneven spatial distribution. In addition, the mechanism of entrepreneurship is affected by administrative hierarchies. However, the driving forces behind the spatial differences are not clear. Therefore, this study aims to examine the key determinants of entrepreneurship by clarifying the roles of localisation economies and intellectual property rights (IPRs) protection from 2008 to 2017 using a Bayesian analysis of multi-level spatial correlation. The empirical results indicate that localisation economies and IPRs protection have a major influence on entrepreneurship. In particular, although it is insignificant, the role of localisation economies at prefecture level is important, because the impact of supplier linkages at provincial level is negative. The effects of IPRs protection at both prefecture and provincial levels are significant in all the models, and its effect increases with the improvement in model performance. Moreover, these determinants vary across different spatial scales.

Keywords: entrepreneurship; IPRs protection; localisation economies; multi-level models; spatial random effects (search for similar items in EconPapers)
JEL-codes: C1 J1 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2022-06-01
New Economics Papers: this item is included in nep-cna, nep-geo, nep-ipr, nep-sbm, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in Structural Change and Economic Dynamics, 1, June, 2022, 61, pp. 156 - 165. ISSN: 0954-349X

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