Entrepreneurship in China: Evidence from Eastern, Central and Western Regions

Abstract

Nowadays, the re-emergence of a dynamic private sector has become the driving force behind the China's spectacular economic gains. This paper employs data from the three China planning regions, i.e. eastern, central and western region to study nascent entrepreneurship. We know from statistic data that entrepreneurship levels differ between regions. A version of the probit model is used to test individual and regional factors' role played in entrepreneurship. We show that the region matters for the decision to start a new business ceteris paribus, i.e. after controlling for sex, age, education etc. The consequences of these findings for regional policies to encourage new firm entry are discussed briefly in the concluding section.