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Determinants of entrepreneurial activities in China

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  • Lu, Jiangyong
  • Tao, Zhigang

Abstract

The institutional environment - including protection of private properties and contract enforcement - has been rather unfavorable for the emergence and development of China's private enterprises. This is in sharp contrast to the case of the developed economies where the institutional environment is conductive to the entrepreneurial activities and only the personal attributes of would-be entrepreneurs determine their entrepreneurship decision. We thus propose a theoretical framework for the entrepreneurship decision in China with a focus on the role of the institutional environment. Using a life-histories survey data of 2854 respondents from twenty cities in China, we find strong support for the impacts of the institutional environment and its interactions with other determinants of entrepreneurship decision.

Suggested Citation

  • Lu, Jiangyong & Tao, Zhigang, 2010. "Determinants of entrepreneurial activities in China," Journal of Business Venturing, Elsevier, vol. 25(3), pages 261-273, May.
    • Handle: RePEc:eee:jbvent:v:25:y:2010:i:3:p:261-273
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    More about this item

    Keywords

    Protection of private properties Contract enforcement Institutional environment Entrepreneurship;

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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