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Cooperative culture and the birth of modern enterprises in China: Evidence from the signing of the Treaty of Shimonoseki

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  • Cai, Yang
  • Zhu, Jiong

Abstract

The Treaty of Shimonoseki was signed in 1895 and led to the deregulation of Chinese private enterprise investment in state monopolized industries. Newly founded enterprises necessitated cooperation amongst member-owners for access to primitive capital. A spirit of cooperative behavior thus resulted in the birth of enterprises in China. We used Chinese prefecture-level panel data between 1880 and 1899 to demonstrate that an increase in the number of enterprises brought by the deregulation is more likely to form in regions that culturally nurture cooperative behavior. We also found a persistent influence of cooperative culture on foundation of enterprises today.

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  • Cai, Yang & Zhu, Jiong, 2024. "Cooperative culture and the birth of modern enterprises in China: Evidence from the signing of the Treaty of Shimonoseki," European Economic Review, Elsevier, vol. 163(C).
    • Handle: RePEc:eee:eecrev:v:163:y:2024:i:c:s0014292124000266
    DOI: 10.1016/j.euroecorev.2024.104697
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    Keywords

    Enterprises; Culture; Cooperation; Deregulation; The Treaty of Shimonoseki;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • N40 - Economic History - - Government, War, Law, International Relations, and Regulation - - - General, International, or Comparative
    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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