Abstract

http://ssrn.com/abstract=1153577
 
 

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Is Entrepreneurship Missing in Shanghai?


Yasheng Huang


Massachusetts Institute of Technology (MIT) - Sloan School of Management

Yi Qian


Northwestern University - Kellogg School of Management

June, 30 2008

MIT Sloan Research Paper No. 4707-08

Abstract:     
Using a unique census dataset on all industrial firms (with more than 5 million yuan in sales), we document a phenomenon of missing entrepreneurship in Shanghai. Entrepreneurship is defined as private, new entrants in our paper. Specifically, in terms of business density, the size of employment and a host of other measures, the relative ranking of Shanghai was always near the bottom in the country. All these empirical findings took place against a backdrop of the presumably huge locational advantages of Shanghai - the substantial human capital, rapid GDP growth, and a long and stellar - but pre-communist - history of entrepreneurship. We propose a hypothesis that Shanghai adopted a particularly rigorous version of industrial policy model of economic development and this industrial policy proclivity may have led to the atrophy of entrepreneurship in Shanghai.

Number of Pages in PDF File: 45

Keywords: Shanghai, Entrepreneurship

JEL Classification: F00, L26, R11

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Date posted: July 1, 2008  

Suggested Citation

Huang, Yasheng and Qian, Yi, Is Entrepreneurship Missing in Shanghai? (June, 30 2008). MIT Sloan Research Paper No. 4707-08. Available at SSRN: http://ssrn.com/abstract=1153577 or http://dx.doi.org/10.2139/ssrn.1153577

Contact Information

Yasheng Huang (Contact Author)
Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )
77 Massachusetts Ave.
E62-416
Cambridge, MA 02142
United States
Yi Qian
Northwestern University - Kellogg School of Management ( email )
2001 Sheridan Road
Evanston, IL 60208
United States
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