Does government paternalistic care promote entrepreneurship in China? Evidence from the China Employer-Employee Survey

Bibliographic Data

ID12917844
AuthorsHong Cheng (0009-0006-9669-8969, Wuhan University), Dezhuang Hu (0000-0002-2514-855X, Wuhan University), Chengyu Xu (0009-0003-0476-9095, Wuhan University), Kai Zhang (0000-0002-7401-2931, Wuhan University), Hanbing Fan (Wuhan University, corresponding author)
Year2017
Volume10
Issue1
Pages61-75
Publication date2017-01-02
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueChina Economic Journal (JOURNAL)
Journal identifiersISSN: 1753-8963 • E-ISSN: 1753-8971
PublisherRoutledge (PUBLISHER • GB)
DOI10.1080/17538963.2016.1274004
OpenAlexW2580901602
LanguageEN
References cited36

This article examines whether government paternalistic care exerts positive effects on entrepreneurship in China, and the channels through which paternalistic care affects entrepreneurship, using data from the 2015 baseline of the China Employer-Employee Survey (CEES). The data suggests that over 70% of manufacturing firms received at least one type of government paternalistic care, though the distributions are different depending on the firm’s size, ownership, industry, firm and entrepreneur’s age. The empirical analysis indicates that government paternalistic care negatively affects entrepreneurship by diminishing innovation capability. Human capital and imported intermediate goods should be the driving forces for a firm’s development, but government paternalistic care has a counterproductive effect on those two factors, thereby impeding entrepreneurship. The results show that those good intentions have gone awry. The government should gradually terminate its paternalistic policies for firms, and firms need to promote their own solid innovation capability.Abbreviations: CEES: China Employer-Employee Survey SOE: State-owned enterprise

Business · China · Economics · Entrepreneurship · Government (linguistics · Labour economics · Market economy · Paternalism · Political science · Public economics · Survey data collection · Entrepreneurship Studies and Influences · Firm Innovation and Growth · Innovation Policy and RD · Law · Finance

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