The impact of China’s “streamlining administration and delegating power” policy on entrepreneurship: an application of Hsiao et al.’s panel data method

Tingting Wu, Bifei Tian and Xueqing Yuan

Applied Economics Letters, 2024, vol. 31, issue 3, 226-231

Abstract: Using pandel data from 2006-2020 and 91 countries, this paper estimates the impact of China’s policy of ‘streamlining administration and delegating power’ (SADP) on entrepreneurship. By adopting Hsiao et al’s panel data method, this paper constructs a counterfactual treatment group and evaluate the impact effectively. The results indicate that the policy of SADP significantly promotes entrepreneurship in China. Furthermore, we find that this result persists across three robustness checks: a placebo test, a leave-one-out test, and the rescreening of potential control countries. Our results suggest that other countries may find beneficial effects on entrepreneurial activity by adopting similar policies.

Date: 2024
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DOI: 10.1080/13504851.2022.2130141

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