 Social credit system construction and entrepreneurial activity: A quasi-natural experiment from ChinaShuzhen Liang, Yongwei Ye and Feng Yun Journal of Asian Economics, 2024, vol. 95, issue C Abstract: This study investigates the impact of the improved social credit environment on entrepreneurial activity. We conduct the time-varying difference-in-differences model based on the quasi-natural experiment of constructing China’s Social Credit System (SCS) and find that the implementation of this institution significantly improves entrepreneurial activity, which remains robust to a series of tests. Mechanism tests reveal that the SCS influences entrepreneurial activity through material, human, and social capital agglomeration effects, as well as by alleviating information asymmetry. Heterogeneity analysis demonstrates that the positive impact of SCS is more obvious in promoting entrepreneurial activity within private enterprises, high-tech, and manufacturing industries. Furthermore, this entrepreneurial effect is more pronounced in cities with lower administrative levels and on the southeast side of the Hu Huanyong Line. Keywords: Social credit system; Entrepreneurial activity; Physical capital; Human capital; Social capital; Information asymmetry (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:95:y:2024:i:c:s1049007824000927 DOI: 10.1016/j.asieco.2024.101797 Access Statistics for this article Journal of Asian Economics is currently edited by C. Wiemer More articles in Journal of Asian Economics from Elsevier |
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