Economics at your fingertips  

What sustains larger firms? Evidence from Chinese manufacturing industries

Canfei He (), Qi Guo () and David Rigby ()
Additional contact information
Canfei He: Peking University
Qi Guo: Nankai University
David Rigby: University of California, Los Angeles

The Annals of Regional Science, 2017, vol. 58, issue 2, 275-300

Abstract: Abstract This study investigates what sustains large firms in China and identifies the determinants of firm sustaining. With the understanding of the triple process of economic transition, this study explores the influence of global–local interaction and regional factors on business sustaining. Based on the Annual Survey of Industrial Firms in China during 1998–2005, this paper employs the Cox proportional hazard model to confirm that global, provincial and local forces are critical for the sustaining of large firms. Particularly, the presence of foreign firms shows strong competition effect at the prefecture city level but no spillover effect at the provincial level. Provincial market-oriented institutions and market potential however are crucial to sustain businesses in China. Non-state-owned enterprises such as private and foreign firms are more dependent on market-oriented institutions than state own enterprises. Firms which are able to reap from agglomeration economies and local governmental supports are more likely to sustain. In addition, local factors show different impacts on business sustaining in different regions. The findings indicate that both market and state can play a substantial role in sustaining businesses in transitional economies.

JEL-codes: D21 R00 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:

Ordering information: This journal article can be ordered from

Access Statistics for this article

The Annals of Regional Science is currently edited by Martin Andersson, E. Kim and Janet E. Kohlhase

More articles in The Annals of Regional Science from Springer, Western Regional Science Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2019-11-06
Handle: RePEc:spr:anresc:v:58:y:2017:i:2:d:10.1007_s00168-016-0778-1