The Investment Climate and the Firm : Firm-Level Evidence from China
71 Pages Posted: 20 Apr 2016
Date Written: March 24, 2003
The importance of a country's"investment climate"for economic growth has recently received much attention. The authors address the general lack of appropriate data for measuring the investment climate and its effects. The authors use a new survey of 1,500 Chinese enterprises in five cities to more precisely define and measure components of the investment climate, highlight the importance of firm-level data for rigorous analysis of the investment climate, and investigate empirically the effects of this comprehensive set of measures on firm performance in China. Overall, their firm-level analysis reveals that the main determinants of firm performance in China are international integration, entry and exit, labor market issues, technology use, and access to external finance.
Keywords: Debt Markets, Access to Finance, Emerging Markets, Economic Theory & Research
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