Business Environment and Dual-Track Private Sector Development : China's Experience in Two Crucial Decades
A void in the literature on the business environment is how it evolves over time. Focusing on China during its crucial two decades of transition (from the early 1990s to the early 2010s), this paper documents how the country's business environ...
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/327401582639640799/Business-Environment-and-Dual-Track-Private-Sector-Development-Chinas-Experience-in-Two-Crucial-Decades http://hdl.handle.net/10986/33393 |
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okr-10986-333932022-09-20T00:13:11Z Business Environment and Dual-Track Private Sector Development : China's Experience in Two Crucial Decades Long, Cheryl Xiaoning Xu, L. Colin Yang, Jin BUSINESS ENVIRONMENT PRIVATE SECTOR DEVELOPMENT INNOVATION ENTREPRENEURSHIP LOCAL GOVERNANCE POLITICAL CONNECTIONS CORPORATE GOVERNANCE MARKET COMPETITION WORLD TRADE ORGANIZATION A void in the literature on the business environment is how it evolves over time. Focusing on China during its crucial two decades of transition (from the early 1990s to the early 2010s), this paper documents how the country's business environment and the characteristics of entrepreneurs evolved, along with the role played by local governments. Relying on multiple comprehensive data sets, the paper shows that many aspects of local business environments improved: infrastructure, development of the court system, and access to external finance. Meanwhile, the share of politically connected private firms remained large, and their advantage in accessing key resources increased. Under this dual-track private sector development, private firms became larger and more innovative and adopted more formal corporate governance mechanisms. Entrepreneurs became much better educated, with more diverse sectoral experience. Market competition increased over time, especially after China's World Trade Organization entry. The paper offers suggestive evidence that this dual track development had negative consequences, such as a lower tendency to innovate by politically connected firms. 2020-02-26T16:04:40Z 2020-02-26T16:04:40Z 2020-02 Working Paper http://documents.worldbank.org/curated/en/327401582639640799/Business-Environment-and-Dual-Track-Private-Sector-Development-Chinas-Experience-in-Two-Crucial-Decades http://hdl.handle.net/10986/33393 English Policy Research Working Paper;No. 9161 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific China |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
BUSINESS ENVIRONMENT PRIVATE SECTOR DEVELOPMENT INNOVATION ENTREPRENEURSHIP LOCAL GOVERNANCE POLITICAL CONNECTIONS CORPORATE GOVERNANCE MARKET COMPETITION WORLD TRADE ORGANIZATION |
| spellingShingle |
BUSINESS ENVIRONMENT PRIVATE SECTOR DEVELOPMENT INNOVATION ENTREPRENEURSHIP LOCAL GOVERNANCE POLITICAL CONNECTIONS CORPORATE GOVERNANCE MARKET COMPETITION WORLD TRADE ORGANIZATION Long, Cheryl Xiaoning Xu, L. Colin Yang, Jin Business Environment and Dual-Track Private Sector Development : China's Experience in Two Crucial Decades |
| geographic_facet |
East Asia and Pacific China |
| relation |
Policy Research Working Paper;No. 9161 |
| description |
A void in the literature on the business
environment is how it evolves over time. Focusing on China
during its crucial two decades of transition (from the early
1990s to the early 2010s), this paper documents how the
country's business environment and the characteristics
of entrepreneurs evolved, along with the role played by
local governments. Relying on multiple comprehensive data
sets, the paper shows that many aspects of local business
environments improved: infrastructure, development of the
court system, and access to external finance. Meanwhile, the
share of politically connected private firms remained large,
and their advantage in accessing key resources increased.
Under this dual-track private sector development, private
firms became larger and more innovative and adopted more
formal corporate governance mechanisms. Entrepreneurs became
much better educated, with more diverse sectoral experience.
Market competition increased over time, especially after
China's World Trade Organization entry. The paper
offers suggestive evidence that this dual track development
had negative consequences, such as a lower tendency to
innovate by politically connected firms. |
| format |
Working Paper |
| author |
Long, Cheryl Xiaoning Xu, L. Colin Yang, Jin |
| author_facet |
Long, Cheryl Xiaoning Xu, L. Colin Yang, Jin |
| author_sort |
Long, Cheryl Xiaoning |
| title |
Business Environment and Dual-Track Private Sector Development : China's Experience in Two Crucial Decades |
| title_short |
Business Environment and Dual-Track Private Sector Development : China's Experience in Two Crucial Decades |
| title_full |
Business Environment and Dual-Track Private Sector Development : China's Experience in Two Crucial Decades |
| title_fullStr |
Business Environment and Dual-Track Private Sector Development : China's Experience in Two Crucial Decades |
| title_full_unstemmed |
Business Environment and Dual-Track Private Sector Development : China's Experience in Two Crucial Decades |
| title_sort |
business environment and dual-track private sector development : china's experience in two crucial decades |
| publisher |
World Bank, Washington, DC |
| publishDate |
2020 |
| url |
http://documents.worldbank.org/curated/en/327401582639640799/Business-Environment-and-Dual-Track-Private-Sector-Development-Chinas-Experience-in-Two-Crucial-Decades http://hdl.handle.net/10986/33393 |
| _version_ |
1764478663096532992 |