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Cultural diversity and new firm formation in China

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  • Bindong Sun
  • Pan Zhu
  • Wan Li

Abstract

Using data on new private firm formation in prefectural cities in China in 2008 and internal migration of Chinese people in 2000, this paper examines to what extent cultural diversity can explain the regional variation of entrepreneurship. The results indicate that, holding other factors constant, cultural diversity vigorously promotes new private firm formation, especially in the manufacturing industry and for small firms. We address the endogeneity of cultural diversity by applying instrumental variables methods and confirm the relative robustness of this result.

Suggested Citation

  • Bindong Sun & Pan Zhu & Wan Li, 2019. "Cultural diversity and new firm formation in China," Regional Studies, Taylor & Francis Journals, vol. 53(10), pages 1371-1384, October.
    • Handle: RePEc:taf:regstd:v:53:y:2019:i:10:p:1371-1384
    DOI: 10.1080/00343404.2019.1566700
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    Cited by:

    1. Wan Li & Bindong Sun & Shuaishuai Han & Xiaoxi Jin, 2023. "Does Urban Agglomeration Discourage Entrepreneurship in China? Micro-Empirical Evidence from China," Land, MDPI, vol. 12(1), pages 1-14, January.
    2. Fandi Yang & Peng Yuan & Gongxiong Jiang, 2022. "Knowledge Spillovers, Institutional Environment, and Entrepreneurship: Evidence from China," Sustainability, MDPI, vol. 14(22), pages 1-27, November.
    3. Abdul Shaban & Shahbaz Khan, 2023. "Cultural diversity, human capital, and regional economic growth in India," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(5), pages 973-991, June.
    4. Zhu, Chen & Lee, Chien-Chiang, 2022. "The effects of low-carbon pilot policy on technological innovation: Evidence from prefecture-level data in China," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    5. Xiuxiu Jiang & Xia Wang & Jia Ren & Zhimin Xie, 2023. "Digital economy, agglomeration, and entrepreneurship in Chinese cities," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 359-370, January.
    6. Mikaela Backman & Janet E. Kohlhase, 2022. "Labor force diversity and new firm formation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(1), pages 9-28, February.

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