Political economy of private firms in China
The sweeping change in political economy associated with the rapid growth of the private sector in China is rarely studied empirically in the economics literature. Using four cross-sectional surveys of private firms between 1995 and 2010, we examine the dynamics of rent creation from Party membership and other political connections when the regime changed from anti-capitalistic to pro-capitalistic during the period 2002–2004. We find that entrepreneurs with political connection enjoyed significantly more rents only after the constitutional amendments. This finding sheds lights on the nature of the political economy of today’s Chinese economy. Endogeneity/causality problems are addressed.
Year of publication: |
2014
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Authors: | Guo, Di ; Jiang, Kun ; Kim, Byung-Yeon ; Xu, Chenggang |
Published in: |
Journal of Comparative Economics. - Elsevier, ISSN 0147-5967. - Vol. 42.2014, 2, p. 286-303
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Publisher: |
Elsevier |
Subject: | Party membership | China | Political connections | Private firms |
Saved in:
Online Resource
Type of publication: | Article |
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Classification: | G30 - Corporate Finance and Governance. General ; G32 - Financing Policy; Capital and Ownership Structure ; G34 - Mergers; Acquisitions; Restructuring; Corporate Governance ; P48 - Legal Institutions; Property Rights |
Source: |
Persistent link: https://www.econbiz.de/10010778533
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