Wenzhou used to be one of the poorest regions in eastern China. With limited arable land, poor road access to major cities, and little support from the government, it seemed to lack all the necessary conditions for economic growth according to the standard textbook. However, over the past...

In the paper, we use a panel data approach to study the threshold effects and nonlinearity in economic growth instead of the cross-sectional approach commonly used in previous studies. The methodologies developed by Hansen (2000) and Caner and Hansen (2004) are applied to identify threshold...

Traditional economic theory posits that a well functioning capital market is a necessary condition for industrialization and economic growth. However, in reality it is observed that micro and small enterprises are ubiquitous because entrepreneurs can set up business in low-return activities with...

There have been competing arguments about the effect of public infrastructure on productivity in the literature. Level-based regressions generally show a much higher return to public capital than private capital, while difference-based regressions tend to find insignificant or even negative...