Private Sector Industrialization in China: Evidence from Wenzhou

Posted: 28 Mar 2009 Last revised: 13 Aug 2016

John Strauss

University of Southern California - Department of Economics

Yanmin Edward Qian Sr.

Department of Finance,School of Economics,Zhejiang University

Minggao Shen

Peking University - China Center for Economic Research (CCER)

Dong Liu

Zhejiang University - Center for Research of Private Economy (CRPE)

Mahdi Majbouri

Babson College

Qi Sun

Shanghai University of Finance and Economics

Qianfan Ying

Zhejiang University - Center for Research of Private Economy (CRPE)

Yi Zhu

University of Minnesota - Carlson School of Management

Date Written: February 1, 2009

Abstract

It is the purpose of this study to help shed light on the entrepreneurship, entrepreneurs and enterprise growth in Wenzhou. We rely on a probabilistic firm survey that we carried out in Wenzhou in early 2006 for three industries: shoes, eyeglasses and general equipment. We fielded a formal survey, but we also asked many informal questions in addition, which helps us to enrich our story. In our survey we focused on getting detailed firm histories to learn about how the firms started and grew. We focused on the origins of the firms, including prior firms that may have been antecedents. We collected information on whom the founders were, how many, their relationships with each other, and their background in terms of experience and other human capital. We collected detailed information on how they financed their start, and how they financed their expansion. We also have detailed information on the sources of technology into the firms, particularly whether it was Chinese or imported and whether the firms were getting technical instructions from foreign firms they may have been exporting to. We also have detailed information on markets, especially how markets and how export markets were found. We also collected detailed information about explicit assistance that came from governments, local and/or central. Finally we also interviewed workers at each firm: managers, skilled workers such as designers, and production workers. In this paper we survey some the main results.

JEL Classification: O12, O14, O53

Suggested Citation

Strauss, John and Qian, Yanmin Edward and Shen, Minggao and Liu, Dong and Majbouri, Mahdi and Sun, Qi and Ying, Qianfan and Zhu, Yi, Private Sector Industrialization in China: Evidence from Wenzhou (February 1, 2009). IEPR Working Paper No. 09.01. Available at SSRN: https://ssrn.com/abstract=1346226 or http://dx.doi.org/10.2139/ssrn.1346226

John Strauss (Contact Author)

University of Southern California - Department of Economics ( email )

306A Kaprielian Hall
Los Angeles, CA 90089
United States

Yanmin Edward Qian Sr.

Department of Finance,School of Economics,Zhejiang University ( email )

Hangzhou, Zhejiang 310027
China
011-86-13588481962 (Phone)

Minggao Shen

Peking University - China Center for Economic Research (CCER) ( email )

Beijing, Beijing 100871
China
+86(10)62751475 (Phone)
+86(10)62751474 (Fax)

HOME PAGE: http://CCER.pku.edu.cn/

Dong Liu

Zhejiang University - Center for Research of Private Economy (CRPE) ( email )

Hangzhou, Zhejiang 310027
China

Mahdi Majbouri

Babson College ( email )

231 Forest St.
Babson Park, MA 02457-0310
United States
781-239-5549 (Phone)
781-239-5239 (Fax)

Qi Sun

Shanghai University of Finance and Economics ( email )

Shanghai, 200433
China

Qianfan Ying

Zhejiang University - Center for Research of Private Economy (CRPE) ( email )

Hangzhou, Zhejiang 310027
China

Yi Zhu

University of Minnesota - Carlson School of Management ( email )

321 - 19th Ave. South, Suite 3-150
Minneapolis, MN 55455
United States

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