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Property rights, trade credit and entrepreneurial activity in China

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  • Go Yano
  • Maho Shiraishi
  • Haiqing Hu

Abstract

This work empirically reconsiders the significance of legal protection of property rights and financial development for entrepreneurial activity measured by private investment in China, taking into account trade credit as an intermediate position between the two institutional developments. For financial development, we find that development of trade credit has a direct positive influence on private entrepreneurial investment, while development of bank finance has less impact on promotion of private investment. Legal property rights protection likely encourages private entrepreneurial investment indirectly, via development of trade credit.

Suggested Citation

  • Go Yano & Maho Shiraishi & Haiqing Hu, 2013. "Property rights, trade credit and entrepreneurial activity in China," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 18(1), pages 168-192.
    • Handle: RePEc:taf:rjapxx:v:18:y:2013:i:1:p:168-192
    DOI: 10.1080/13547860.2012.742712
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    References listed on IDEAS

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    Cited by:

    1. Bogatyreva, K. & Shirokova, G. & Osiyevskyy, O., 2016. "Intention-behavior translation in student entrepreneurship: An institutional perspective," Working Papers 6455, Graduate School of Management, St. Petersburg State University.

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