Endogenous Institutions and Economic Growth: Evidence from China
The paper examined how economic institutions affect capital accumulation in the private firms sector through the finance sector and the operation objectives of different ownership firms in a socialist market economy with Chinese characteristics, which extended the neo-classical economic growth metho...
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| Format: | Article |
| Language: | English |
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Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
2020-01-01
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| Series: | Nauki o Finansach |
| Online Access: | https://journals.ue.wroc.pl/fins/article/view/230 |
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| _version_ | 1849733863739228160 |
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| author | Zhao Li Yujing Chu |
| author_facet | Zhao Li Yujing Chu |
| author_sort | Zhao Li |
| collection | DOAJ |
| description | The paper examined how economic institutions affect capital accumulation in the private firms sector through the finance sector and the operation objectives of different ownership firms in a socialist market economy with Chinese characteristics, which extended the neo-classical economic growth method. The Author found that economic institutions were the main factors affecting the efficiency of capital allocation between the private sector and the state-owned sector. Compared with the state-owned sector, economic institutions lead private sector to a decrease in loans and government subsidies through finance sector, and to an increase in its production costs. The evidence suggests that private firms make efforts to hire special human capital to improve economic institutions as a substitute for political capital. Considering that the strategy of China's economic institutions reform was a national promotion which followed after a regional pilot, this paper found that the economic institutions' reform pilot areas had a more significant impact on economic growth.(original abstract) |
| format | Article |
| id | doaj-art-b77927630bdc4f56b7e5807ca8589e91 |
| institution | DOAJ |
| issn | 2449-9811 |
| language | English |
| publishDate | 2020-01-01 |
| publisher | Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu |
| record_format | Article |
| series | Nauki o Finansach |
| spelling | doaj-art-b77927630bdc4f56b7e5807ca8589e912025-08-20T03:07:57ZengWydawnictwo Uniwersytetu Ekonomicznego we WrocławiuNauki o Finansach2449-98112020-01-01251231Endogenous Institutions and Economic Growth: Evidence from ChinaZhao Li0Yujing Chu1Glorious Sun School of Business and Management (GSSBM), DongHua University, Tourism College, Shanghai Normal University, Shanghai, ChinaGlorious Sun School of Business and Management (GSSBM), DongHua University, Tourism College, Shanghai Normal University, Shanghai, ChinaThe paper examined how economic institutions affect capital accumulation in the private firms sector through the finance sector and the operation objectives of different ownership firms in a socialist market economy with Chinese characteristics, which extended the neo-classical economic growth method. The Author found that economic institutions were the main factors affecting the efficiency of capital allocation between the private sector and the state-owned sector. Compared with the state-owned sector, economic institutions lead private sector to a decrease in loans and government subsidies through finance sector, and to an increase in its production costs. The evidence suggests that private firms make efforts to hire special human capital to improve economic institutions as a substitute for political capital. Considering that the strategy of China's economic institutions reform was a national promotion which followed after a regional pilot, this paper found that the economic institutions' reform pilot areas had a more significant impact on economic growth.(original abstract)https://journals.ue.wroc.pl/fins/article/view/230 |
| spellingShingle | Zhao Li Yujing Chu Endogenous Institutions and Economic Growth: Evidence from China Nauki o Finansach |
| title | Endogenous Institutions and Economic Growth: Evidence from China |
| title_full | Endogenous Institutions and Economic Growth: Evidence from China |
| title_fullStr | Endogenous Institutions and Economic Growth: Evidence from China |
| title_full_unstemmed | Endogenous Institutions and Economic Growth: Evidence from China |
| title_short | Endogenous Institutions and Economic Growth: Evidence from China |
| title_sort | endogenous institutions and economic growth evidence from china |
| url | https://journals.ue.wroc.pl/fins/article/view/230 |
| work_keys_str_mv | AT zhaoli endogenousinstitutionsandeconomicgrowthevidencefromchina AT yujingchu endogenousinstitutionsandeconomicgrowthevidencefromchina |