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Red Capitalists: Political Connections and the Growth and Survival of Start-up Companies in China

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Author Info
Jun Du
Sourafel Girma

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Abstract

This paper analyses the role of political connections in the post-entry performance of private start-up companies in China. It documents robust evidence that political affiliation enhances firms’ survival and growth prospects, even if politically neutral start-ups enjoy faster productivity improvements. In addition, the benefits of political connections are largely confined to firms associated with local or top level governments, and they are more pronounced in capital-intensive industries.

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File URL: http://www.gep.org.uk/leverhulme/publications/Papers/2007/2007_40.php
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Publisher Info
Paper provided by University of Nottingham, GEP in its series Discussion Papers with number 07/40.

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Handle: RePEc:not:notgep:07/40

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Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD
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Web page: http://www.nottingham.ac.uk/economics/
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Related research
Keywords: China; political connections; growth; survival;

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This page was last updated on 2009-11-10.

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