Government Intervention, Economic Freedom and Entrepreneurship: Empirical Evidence from China
Government intervention is commonly believed to has detrimental effects on entrepreneurship in market economy. However, when it comes to China (a transitional economy, of which the driving force behind economic development and entrepreneurship promotion derived mainly from the local governments) does this general judgment hold nevertheless? To answer that question, our empirical analysis, based on cross-sectional data of all the mainland provinces and municipalities of China (excluding Tibet) in 2000 and SEM calculation tests the correlation among government intervention, economic freedom and entrepreneurship. We find that the government intervention had an immediate influence on entrepreneurship positively in specific, but denied economic freedom in general, which is vital elements conducive to entrepreneurship and economic growth, thus impact entrepreneurship negatively in the long run. To account for this paradox, we come up with four possible reasons and the policy implications: the prescription for economic growth and entrepreneurship is to reduce government inference and create an institutional, free environment that encourages and rewards productive activities.
Government Intervention Economic Freedom and Entrepreneurship
ZHANG Ye LIU Tiejun MEI Lixia
Dep. of Urban and Regional Planning, Peking University, Beijing, China Antai College of Eco. & Manag., Shanghai Jiao Tong University, Shanghai, China
国际会议
The Fifth InternationalSymposium on Management of Technology(ISMOT07)(第五届技术与创新管理国际研讨会)
杭州
英文
873-876
2007-06-01（万方平台首次上网日期，不代表论文的发表时间）