Knowledge Spillovers, Institutional Environment, and Entrepreneurship: Evidence from China

Fandi Yang, Peng Yuan and Gongxiong Jiang ()
Additional contact information
Fandi Yang: Institute of Western China Economic Research, Southwestern University of Finance and Economics, Chengdu 611130, China
Peng Yuan: Institute of Western China Economic Research, Southwestern University of Finance and Economics, Chengdu 611130, China
Gongxiong Jiang: Institute of Western China Economic Research, Southwestern University of Finance and Economics, Chengdu 611130, China

Sustainability, 2022, vol. 14, issue 22, 1-27

Abstract: The knowledge spillover theory of entrepreneurship (KSTE) predicts a positive relationship between knowledge creation and entrepreneurial activity. As a transitional economy, China exhibits great differences among regions in advancing market reforms and opening-up, largely due to the gradual nature of its economic transformation and opening-up. This situation provides a suitable setting for exploring the role of the institutional environment in the KSTE framework. In this study, we discuss the applicability of the KSTE in the Chinese context and theoretically analyze the role of the institutional environment from aspects of market reforms and opening-up. An empirical analysis based on the data of the Chinese manufacturing sector shows that the KSTE is applicable in China and it is applicable to industries with different technology levels and regions with different levels of economic development. More importantly, we find that both market reforms and opening-up strengthen the positive effect of knowledge creation on entrepreneurship. Our exploration in this field extends the KSTE.

Keywords: knowledge spillover; entrepreneurship; institutional environment; developing countries; instrument variable (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/22/14938/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/22/14938/ (text/html)

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:gam:jsusta:v:14:y:2022:i:22:p:14938-:d:970072

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().