 Trustworthiness of local government, institutions, and self-employment in transitional ChinaJiangli Dou, Bing Ye, Jianliang Ye and Zhidong Pan China Economic Review, 2019, vol. 57, issue C Abstract: In this paper, we investigate the relationship between the trustworthiness of the local government and individuals' self-employment decision by using data from the China Family Panel Studies. We find that the trustworthiness of the local government has a statistically significant role in individuals' decision about self-employment and that the marginal effect on self-employment is context dependent and increases with the quality of the institutions. The trustworthiness of the local government prompts self-employment in provinces where the market institutions are well developed and suppresses it in other regions. Heterogeneity concerns on rural-urban and generations are also explored. We also find that the quality of market institutions increases self-employment, and the scale increases with the trustworthiness of the local government. Keywords: Trustworthiness of the local government; Self-employment; Institution; Transition (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:chieco:v:57:y:2019:i:c:s1043951x19300902 DOI: 10.1016/j.chieco.2019.101329 Access Statistics for this article China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu More articles in China Economic Review from Elsevier |
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