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Analyzing the influence of social capital on self-employment: a study of Chinese immigrants

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  • Isidoro Romero
  • Zhikun Yu

Abstract

This paper studies the influence of social capital on immigrants’ self-employment, differentiating between structural, relational and cognitive social capital. The paper has a particular focus on Chinese immigrants and explores the effects of the so-called guanxi, a specific form of social capital for Chinese communities. The empirical research is based on a survey conducted in 2012 among Chinese immigrants in Andalusia (Spain) in which both business owners and paid employees were interviewed. A logistic regression specification was employed to test the hypotheses. The results show that the Chinese immigrants with greater structural and relational social capital and better ‘guanxi’ are more likely to become business owners. On the contrary, cognitive social capital seems to favor the option for paid employment versus the option for self-employment among Chinese immigrants. However, in the specific case of the Chinese immigrants who have a business owner in their family, the cognitive social capital also has positive effects on self-employment. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Isidoro Romero & Zhikun Yu, 2015. "Analyzing the influence of social capital on self-employment: a study of Chinese immigrants," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 877-899, May.
    • Handle: RePEc:spr:anresc:v:54:y:2015:i:3:p:877-899
    DOI: 10.1007/s00168-015-0692-y
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    Cited by:

    1. Bellido-Jiménez, Víctor Manuel & Martín-Martín, Domingo & Romero Luna, Isidoro, 2022. "Autoempleo en inmigrantes y supervivencia empresarial de los negocios incubados en Andalucía," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 52, pages 59-80.
    2. Harrison, Jane L. & Montgomery, Claire A. & Jeanty, P. Wilner, 2019. "A spatial, simultaneous model of social capital and poverty," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 78(C), pages 183-192.
    3. María José Rodríguez-Gutiérrez & Isidoro Romero & Zhikun Yu, 2020. "Guanxi and risk-taking propensity in Chinese immigrants’ businesses," International Entrepreneurship and Management Journal, Springer, vol. 16(1), pages 305-325, March.

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    More about this item

    Keywords

    R23; J15; M13; Z10;
    All these keywords.

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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