EconPapers    
Economics at your fingertips  
 

Clans, entrepreneurship, and development of the private sector in China

Chuanchuan Zhang ()

Journal of Comparative Economics, 2020, vol. 48, issue 1, 100-123

Abstract: This paper examines the role of clans in China's unprecedented development of the private sector. Although with no well-developed financial and legal systems, China witnesses a boom of private sector, which has contributed to most of its economic growth during the past three decades. Using inter-census population survey and economic census data, I find that the clan is positively associated with the likelihood of entrepreneurship and the share of economy in the private sector. Exploring possible mechanisms, I find that the clan helps privately-owned enterprises overcome financing constraints and escape from local government's “grabbing hand”. In addition, the clan is significantly related to a set of individual values, which are arguably relevant for private business. Finally, I find that the support of clans for private business is limited as clans deter private businesses from growing into large firms. The results also suggest that the role of clans reduces as formal institutions develop.

Keywords: Culture; Clans; Entrepreneurship; Private sector; China (search for similar items in EconPapers)
JEL-codes: J21 O10 P20 R12 Z10 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0147596718300477
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:jcecon:v:48:y:2020:i:1:p:100-123

DOI: 10.1016/j.jce.2019.08.008

Access Statistics for this article

Journal of Comparative Economics is currently edited by D. Berkowitz and G. Roland

More articles in Journal of Comparative Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2021-08-10
Handle: RePEc:eee:jcecon:v:48:y:2020:i:1:p:100-123