A Sino-US comparative analysis of the hi-tech entrepreneurial model

Huihong Shi, Congming Mu, Jinqiang Yang and Wenli Huang

Economic Modelling, 2021, vol. 94, issue C, 953-966

Abstract: This paper adds a government subsidy variable to expand the WWY (Wang, C., Wang, N., Yang, J., 2012) model, which is a three-stage entrepreneurial dynamic partial equilibrium model and a useful theoretical tool to analyze entrepreneurial realities after government intervention factors are considered. We analyze the productivity shock and market portfolio risk, endogenous entry and exit, investment, consumption, enterprise value and so on, using 15 parameters and 21 variables. The paper explains the present hi-tech entrepreneurial competitive advantage of US, even Chinese government provides lump sum financial subsidy. Although subsidies lower the initial entrepreneurial condition, significantly increase the number of startups, but would not improve entrepreneurial quality such as the investment and the growth of the hi-tech entrepreneurial wealth. The ongoing market deepening reforms such as IPO reform and venture capital cooperation will finally improve model parameters of China and weaken US’s advantage. Another conclusion is that debt-based entrepreneurship should not be encouraged. The conclusions will have some important policy significance.

Keywords: Entrepreneurial economics; Hi-tech entrepreneurial model; Sino-US hi-tech entrepreneurial competition; Government subsidy; Productivity shock; Market portfolio risk (search for similar items in EconPapers)
JEL-codes: E22 G11 G31 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0264999319317365
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:94:y:2021:i:c:p:953-966

DOI: 10.1016/j.econmod.2020.02.036

Access Statistics for this article

Economic Modelling is currently edited by S. Hall and P. Pauly

More articles in Economic Modelling from Elsevier
Bibliographic data for series maintained by Catherine Liu ().