Title: State ownership, political connections and entry barriers: evidence from China
Abstract: Private enterprises may encounter high industrial barriers in China because of government administrative restrictions. We analyse the effect of partial state ownership on a privately controlled company’s participation in industries with state-imposed barriers. The results indicate that state ownership in privately controlled enterprises has a significantly positive effect on participation in high barrier industries. After controlling for partial state ownership, we find that personal political identity of entrepreneurs, a previously investigated dimension of political connections, becomes less important in explaining private enterprises’ participation in barrier industries. We also find the effect of state ownership on access to barrier industries will become weaker when local economy is more developed.
Publication Year: 2018
Publication Date: 2018-01-10
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
Cited By Count: 12
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot