Regional deregulation and entrepreneurial growth in China's transition economy

Wubiao Zhou

Entrepreneurship & Regional Development, 2011, vol. 23, issue 9-10, 853-876

Abstract: Despite a less favourable national institutional environment, the private entrepreneurial sector has developed rapidly in China's transition economy. To resolve this puzzle, this study argues that regional deregulation plays a significant role in China's entrepreneurial growth because it stimulates free markets and lifts predatory and discriminatory regulatory policies affecting entrepreneurship. I use provincial-level panel data (1998--2003) for hypothesis testing. The results, based on fixed effects estimation, suggest that deregulation indeed has a significantly positive effect on entrepreneurial growth within regions. In addition, this effect is found to be stronger in earlier years, as well as among less developed, inland regions.

Date: 2011
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DOI: 10.1080/08985626.2011.577816

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