The value of higher education to entrepreneurial performance: Evidence from higher education expansion in China

Yanxiang Feng, Xinyang Tan and Ruixin Wang

China Economic Review, 2022, vol. 73, issue C

Abstract: Using the Enterprise Survey for Innovation and Entrepreneurship in China (ESIEC) 2018 database, we estimate the effect of the higher education of entrepreneur on firm performance. The expansion of higher education in China that began in 1999 is considered as an exogenous shock to identify causal effects. We find (1) that college education of entrepreneur significantly increases the total factor productivity of firms; (2) that college education of entrepreneur significantly increases the probability of innovation; and (3) that college education of entrepreneur significantly increases the likelihood that firms will gain policy supports from governments. The estimation results suggest that the increasing human capital of entrepreneurs is an important driving force for productivity growth in China. The study has policy implications for both higher education expansion and entrepreneurship.

Keywords: Higher education; Entrepreneurship; Productivity (search for similar items in EconPapers)
JEL-codes: D24 I25 L26 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:73:y:2022:i:c:s1043951x22000475

DOI: 10.1016/j.chieco.2022.101789

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