Capítulo VII. Evaluación de la viabilidad del plan estratégico
2. Recomendaciones
This paper examines the determinants of entrepreneurship in the emerging economy of China with a focus on the impacts of institutional environment for private sector development (North, 1990) and its interactions with other determinants of
entrepreneurship. Using a life-histories survey data of 2,854 respondents from twenty cities in China, we find strong support for the role of institutional environment for the entrepreneurship decision, and for the importance of the personal attributes of would-be entrepreneurs such as the public-ownership status of their current employers and their status within those entities that determine their costs of entrepreneurship. Our results are robust to the controls for other personal attributes of would-be
entrepreneurs (such as gender, marital status, age, education, financial conditions, and altitude for taking business risks) that have been found to be important in the existing literature. More importantly we find that the institutional environment has statistically significant interactions with personal attributes of would-be entrepreneurs, implying a structural change in the determinants of entrepreneurship. Overall, our study on the
institutional environment for private sector development and has important implications for policy recommendations.
Figure 1: A Theoretical Framework on the Entrepreneurship Decision in China
H2
H3 H1
Institutional Environment (Legal status of the private sector)
Personal Attributes
Party affiliation and the public ownership status
Other personal attributes
Entrepreneurship
Figure 2: Percentage of Entrepreneurs and the Rate of Entry into Entrepreneurship
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Percentage of entrepreneurs Rate of entry into entrepreneurship
Note: The left axe shows the percentage of entrepreneurs to total respondents who were on the job market in various years. The right axe shows the rate of entry into entrepreneurship to the total number of people who changed their jobs in various years.
Table 1: Number of Entrepreneurs and Types of New Entrepreneurs in the Sample
Note: The reason that number of entrepreneurs in the previous year (column 4) is not equal to lagged number of entrepreneurs (column 1) is that some people retired in corresponding years.
Table 2: Summary Statistics
Variable Definition N Mean Std Min Max
ENTREPRENEURSHIP 1 if the respondent is an entrepreneur in a specific year,
0 otherwise 40263 0.003 0.052 0 1
MALE 1 for male, 0 for female 40204 0.600 0.490 0 1
MARRIAGE 1 if married, 0 otherwise 40263 0.782 0.413 0 1
AGE Age of the respondent 40263 35.665 10.362 15 65
EDUCATION Number of years the respondent had in formal
education 40263 9.523 3.608 0 18
HOME OWNERSHIP 1 if the respondent had private housing, 0 otherwise 40263 0.221 0.415 0 1
ENTERPRENEURIAL PARENT 1 if at least one parent of the respondent had been
entrepreneur, 0 otherwise 40263 0.027 0.162 0 1
JOB CHANGE FREQ The number of job shifts divided by total years of
working experience 40263 0.0345 0.0516 0 0.5
GOVERNMENT AGENCIES
OR PUBLIC ORGANIZATIONS 1 for respondents who worked in government agencies or
public organizations in a specific year, 0 otherwise 40263 0.216 0.412 0 1
STATE-OWNED ENTERPRISES 1 for respondents who worked in state-owned enterprises
in a specific year, 0 otherwise 40263 0.474 0.499 0 1
COLLECTIVE ENTERPRISES 1 for respondents who worked in collective enterprises in
a specific year, 0 otherwise 40263 0.136 0.343 0 1
PARTY MEMBERSHIP 1 if the respondent is a member if the Chinese
Communist Party in a specific year, 0 otherwise 40263 0.169 0.375 0 1
LEGAL POSITION 1 for years on or later than 1989, 0 otherwise 40263 0.367 0.482 0 1
Table 3: Correlation Table
1 2 3 4 5 6 7 8 9 10 11 12 13
ENTREPRENEURSHIP 1 1
MALE 2 0.005 1
MARRIAGE 3 -0.025 -0.065 1
AGE 4 -0.031 0.030 0.487 1
EDUCATION 5 -0.022 0.087 -0.144 -0.234 1 HOME OWNERSHIP 6 0.035 -0.017 0.045 0.001 -0.183 1 ENTERPRENEURIAL PARENT 7 0.009 0.011 -0.005 0.024 0.017 0.024 1 JOB CHANGE FREQ 8 0.049 0.046 0.028 -0.047 0.151 -0.054 -0.015 1 GOVERNMENT AGENCIES 9 -0.022 -0.015 0.102 0.132 0.221 -0.063 -0.003 0.074 1
or PUBLIC ORGANIZATIONS
STATE-OWNED ENTERPRISES 10 -0.035 0.076 0.092 0.054 -0.047 -0.084 -0.016 -0.008 -0.399 1 COLLECTIVE ENTERPRISES 11 0.021 -0.080 0.020 -0.010 -0.196 0.170 0.003 -0.033 -0.209 -0.377 1 PARTY MEMBERSHIP 12 -0.021 0.155 0.194 0.289 0.058 -0.092 -0.012 0.132 0.155 0.019 -0.107 1 LEGAL POSITION 13 0.017 0.016 0.140 0.214 0.089 0.011 0.007 -0.001 0.029 0.024 -0.011 0.023 1
Note: Numbers in bold are statistically significant at 5% level.
Table 4: Coefficient Estimates for Discrete-Time Hazard Models on Entrepreneurship decision
Independent Variables Full Sample Pre-1989 sample Post-1989 sample
MALE 0.380 * 0.397 0.427
ENTERPRENEURIAL PARENT 0.627 1.128 ** 0.398
(0.436) 0.528 (0.747)
JOB CHANGE FREQ 0.985 *** 0.856 *** 1.221 ***
(0.098) (0.143) (0.151)
GOVERNMENT AGENCIES -2.110 *** -2.331 *** -1.643 **
OR PUBLIC ORGANIZATIONS (0.470) (0.732) (0.640)
STATE-OWNED ENTERPRISES -1.929 *** -2.135 *** -1.459 ***
(0.288) (0.395) (0.367)
COLLECTIVE ENTERPRISES -0.601 *** -0.962 *** -0.067
(0.233) (0.324) (0.367)
Person-year at risk 40204 25468 14736
Event 111 66 45
Note: ***, **, and * indicate significant at 1%, 5%, 10%, and 15% level, respectively. Numbers in parentheses are standard errors.
Table 5: Event History Analysis Results with Interaction Terms
HOME OWNERSHIP *LEGAL POSITION 0.504
(0.425)
ENTERPRENEURIAL PARENT 1.101*
(0.607)
ENTERPRENEURIAL PARENT *LEGAL POSITION -0.592
(0.868)
JOB CHANGE FREQ 0.769***
(0.164)
JOB CHANGE FREQ *LEGAL POSITION 0.426**
(0.214)
GOVERNMENT AGENCIES OR PUBLIC ORGANIZATIONS -2.074***
(0.738) GOVERNMENT AGENCIES OR PUBLIC ORGANIZATIONS *LEGAL POSITION 0.174 (0.968)
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