Doing Business in China - A Reproducibility and Replicability Assessment of Jia et al. (2021)

Florian De Bundel, Florian Neubauer, Jörg Ankel-Peters and Julian Rose

No 338, I4R Discussion Paper Series from The Institute for Replication (I4R)

Abstract: Jia et al. (2021) study the intergenerational transmission of entrepreneurship in China, finding that individuals are more likely to become business owners if they have a parent in a governmentlinked position or in business ownership. They further find that these associations depend on the role of the state in the local economy: the former is stronger in environments where the state plays a larger role, while the latter is stronger where it plays a smaller role. This robustness replication assesses each of these four claims. We only use the ready-for-analysis dataset provided by the authors and no additional raw data, varying pre-registered analytical choices. Despite involving only modest departures from the original specifications, the robustness analysis reveals substantial sensitivity in the published findings. Even simply adding parental college education as a control renders two of the three results originally significant at the 5% level insignificant at that threshold. The interaction between having a parent in a state-linked position and the degree of government involvement in the local economy becomes insignificant in all alternative specifications. The same interaction for parental business ownership is also sensitive: even when employing the 10% threshold used in Jia et al. (2021), 53% of specifications are insignificant. Overall, our findings suggest that most of the original results are not robust to plausible alternative analytical choices.

Date: 2026
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