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Regional determinants of poverty alleviation through entrepreneurship in China

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  • Song Lin
  • Christoph Winkler
  • Shanshan Wang
  • Hui Chen

Abstract

Based on the economic theory of dual structure, the authors of this study conducted an empirical analysis on the relationship between entrepreneurship and poverty alleviation using panel data collected in 31 provinces in China from 2000 to 2017. The study arrived at three conclusions. First, entrepreneurship in urban and rural areas can generally facilitate poverty alleviation. Second, the correlation between entrepreneurship and poverty alleviation in urban areas is significantly stronger than in rural areas. Moreover, the correlation is also significantly stronger in developed areas than in underdeveloped areas. Third, the level of financial development in an area can moderate the effect of entrepreneurship on poverty alleviation. These conclusions suggest that entrepreneurial activities in emerging economies have a stronger effect on alleviating poverty in urban regions instead of helping less developed or rural areas. The authors recommend that government agencies should institute policies aimed at vigorously improving the business environment in rural and underdeveloped areas. Particularly a strengthening of the financial system in these areas could further enhance the positive effect of entrepreneurship on poverty alleviation.

Suggested Citation

  • Song Lin & Christoph Winkler & Shanshan Wang & Hui Chen, 2020. "Regional determinants of poverty alleviation through entrepreneurship in China," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 32(1-2), pages 41-62, January.
    • Handle: RePEc:taf:entreg:v:32:y:2020:i:1-2:p:41-62
    DOI: 10.1080/08985626.2019.1640477
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    Cited by:

    1. Arkadiusz Piwowar & Maciej Dzikuc, 2020. "Poverty and Social Exclusion: Is this a Problem in Rural Areas in the Visegrad Group Countries?," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 45-54.
    2. Qi Wang & Yue’e Liao & Jun Gao, 2022. "Rural Residents’ Intention to Participate in Pro-Poor Tourism in Southern Xinjiang: A Theory of Planned Behavior Perspective," Sustainability, MDPI, vol. 14(14), pages 1-17, July.
    3. Haoying Li & Jonas Østergaard Nielsen & Rui Chen, 2023. "Rural Entrepreneurship Development in Southwest China: A Spatiotemporal Analysis," Land, MDPI, vol. 12(4), pages 1-22, March.
    4. Saridakis, George & Georgellis, Yannis & Muñoz Torres, Rebeca I. & Mohammed, Anne-Marie & Blackburn, Robert, 2021. "From subsistence farming to agribusiness and nonfarm entrepreneurship: Does it improve economic conditions and well-being?," Journal of Business Research, Elsevier, vol. 136(C), pages 567-579.
    5. Fernhaber, Stephanie A. & Zou, Huan, 2022. "Advancing societal grand challenge research at the interface of entrepreneurship and international business: A review and research agenda," Journal of Business Venturing, Elsevier, vol. 37(5).
    6. José Ventura & Kety Jauregui, 2023. "Poverty Reduction through Corporate Social Responsibility: Case Study of Peruvian Rural Families," Sustainability, MDPI, vol. 15(2), pages 1-20, January.
    7. Iwona Bak & Joanna Perzynska, 2021. "Poverty and Social Exclusion in the Context of the Implementation of the Sustainable Development Goals," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 68-83.
    8. Wenbo Luo & Chuan Zhang & Minxin Li, 2022. "The influence of corporate social responsibilities on sustainable financial performance: Mediating role of shared vision capabilities and moderating role of entrepreneurship," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1266-1282, September.

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