We study the effects of product market risk on entrepreneurial activities in China, using a favorable change in U.S. trade policy as a plausibly exogenous shock. We do not find an increase in entry rates for domestic firms in exposed industry. However, for upstream suppliers, entry rates...

This paper reviews and synthesizes theoretical and empirical research on the role of finance in developing countries. First, the paper presents the stylized facts about firms in developing nations as well as the legal, financial and broader institutional framework in which these firms operate....