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Human Capital, Perceived Domestic Institutional Quality And Entrepreneurship Among Highly Skilled Chinese Returnees

Author

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  • YUE BAO

    (The Department of Society and Globalization, Roskilde University, 4100 Roskilde, Denmark)

  • QI MIAO

    (School of Social Science, Tsinghua University, Beijing, P. R. China)

  • YING LIU

    (School of Social Science, Tsinghua University, Beijing, P. R. China)

  • DANIEL GARST

    (Center for China and Globalization, Beijing, P. R. China)

Abstract

Over the past two decades, returnee entrepreneurs have emerged as major promoters of business startups and entrepreneurship in China. Recognizing their positive impact in promoting new and innovative companies, Chinese national and local governments have instituted a raft of preferential policies aimed at assisting returnee entrepreneurs. Based on a survey of Chinese returnees and returnee entrepreneurship from 2011 to 2012, this paper examines how human capital and perceptions of domestic institutional quality affect entrepreneurial activity among highly skilled returnees. We find their educational levels, overseas work experience, the degree to which they bring back new business models and their perception of domestic economic opportunities affects the likelihood of such individuals becoming entrepreneurs. Our work suggests regulatory transparency discourages returnees from entering entrepreneurship, suggesting the relationship between regulatory transparency and entrepreneurial behavior is more complex than is portrayed in previous research done on this matter. The results of our analysis are robust against a number of rigorous statistical specification checks.

Suggested Citation

  • Yue Bao & Qi Miao & Ying Liu & Daniel Garst, 2016. "Human Capital, Perceived Domestic Institutional Quality And Entrepreneurship Among Highly Skilled Chinese Returnees," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 21(01), pages 1-21, March.
    • Handle: RePEc:wsi:jdexxx:v:21:y:2016:i:01:n:s1084946716500023
    DOI: 10.1142/S1084946716500023
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    Cited by:

    1. Boris Urban, 2016. "Empirical Evidence On The Influence Of The Institutional Environment On Venture Innovation Performance In South Africa," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 21(02), pages 1-14, June.
    2. Bai, Wensong & Kao, Pao & Wu, Jie, 2021. "Returnee entrepreneurs and the performance implications of political and business relationships under institutional uncertainty," Journal of Business Research, Elsevier, vol. 128(C), pages 245-256.
    3. González-Serrano, María Huertas & Crespo-Hervás, Josep & Pérez-Campos, Carlos & Calabuig, Ferran, 2021. "Entrepreneurial ecosystems for developing the sports industry in European Union countries," Journal of Business Research, Elsevier, vol. 136(C), pages 667-677.
    4. Zhike Lv & María Rodríguez-García & Javier Sendra-García, 2021. "Does institutional quality affect the level of entrepreneurial success differently across the entrepreneurship distribution?," Review of Managerial Science, Springer, vol. 15(4), pages 937-955, May.

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