References (84)



Institutional Barriers to Growth: Entrepreneurship, Human Capital and Institutional Change

Charles E. Eesley

Stanford University - Management Science & Engineering

February 24, 2016

Prior research often focuses on how many entrepreneurial firms are created, rather than on institutions that encourage specific types of firms or entrepreneurs. This paper identifies institutional changes that reduce barriers to growth as an important factor influencing the propensity of individuals to start a business. The findings suggest that the impact of lower barriers to growth is shaped by the extent of the reduction in barriers to growth and the level of human capital of the individual. Only a large reduction in barriers to growth has a stronger impact in increasing the likelihood of founding at higher levels of human capital. I capitalize on two reforms lowering barriers to growth as natural experiments. One reform in 1988 only slightly lowered barriers to growth. The second reform in 1999 more strongly lowered barriers to growth with an amendment to the Chinese constitution reversed regulations that favored firms with foreign investors. This made it easier for domestic entrepreneurs to compete. I collected unique data through a survey of 2,966 alumni who graduated from a top Chinese university. Results show that reducing the institutional barriers to growth differently affects college-educated individuals with different levels of human capital.

Number of Pages in PDF File: 51

Keywords: entrepreneurship, institutional theory, China, human capital

Open PDF in Browser Download This Paper

Date posted: October 31, 2009 ; Last revised: February 25, 2016

Suggested Citation

Eesley, Charles E., Institutional Barriers to Growth: Entrepreneurship, Human Capital and Institutional Change (February 24, 2016). Available at SSRN: http://ssrn.com/abstract=1497062 or http://dx.doi.org/10.2139/ssrn.1497062

Contact Information

Charles E. Eesley (Contact Author)
Stanford University - Management Science & Engineering ( email )
473 Via Ortega
Stanford, CA 94305-9025
United States
(740) 236-4653 (Phone)
HOME PAGE: http://www.stanford.edu/~cee
Feedback to SSRN

Paper statistics
Abstract Views: 1,439
Downloads: 355
Download Rank: 61,121
References:  84
Paper comments
No comments have been made on this paper

© 2016 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollobot1 in 0.172 seconds