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• W3121772011 abstract "This paper presents an extension to the empirical research of Fritsch and Mueller (2008) investigating how entrepreneurial activity affects employment in China's private economy. Both static and dynamic effects are analyzed using data from 31 Chinese provinces during the 2000 to 2008 period. The main findings are as follows: (1) entrepreneurial activity makes a considerable contribution to job creation, (2) an S-shaped dynamic pattern of job creation effect due to entrepreneurial activity is observed to be similar to that found by previous research, and (3) the employment effect of entrepreneurial activity differs according to business type and region.Keywords: Employment effect, Entrepreneurial activity, China, Almon Distributed ModelJEL Classification: R11, R12I. IntroductionA growing body of research argues that economies associated with high entrepreneurial activities enjoy high growth and increased job opportunities (Acs et cd. 2004, 2005; Lee 2009). Representatively, research based on GEM (global entrepreneurship monitoring) report data shows that entrepreneurial activities enhance economic growth and create jobs in many countries (Wong et cd. 2005; Valliere and Peterson 2009). Recently, these studies have expanded into the comprehensive analysis of economic effects arising from detailed and specific entrepreneurial activities (Acs and Armington 2004; Falck 2007; Mueller 2007).These entrepreneurship studies are especially important in the Chinese context, because in transition economies such as China, the entrepreneurial activities of private firms can mitigate the market monopoly of existing state-owned firms and secure maximum social efficiency through competition (Baumol 1990). In a transition economy, entrepreneurial activity is economic development and economic reform itself (MacMillan and Woodruff 2002). Accordingly, Chinese scholars unceasingly make enormous efforts to investigate the role of entrepreneurs in economic reformation with their remarkable results from the past. Early scholar Pei Gang Zhang stresses the importance of entrepreneurship and economic freedom from oppressive institutional restrictions.Recent empirical studies have examined the economic impact of entrepreneurial activity (Yang and Xu 2006; Li et al. 2009). These studies, however, need to be supplemented further, because many of them simplistically conclude that high entrepreneurial activities accelerate economic growth, when in reality, the economic effects of entrepreneurial activities are not limited to such a simple, positive, one-way relationship (Fritsch 2008).Newly founded businesses intensify competition by exerting pressure on existing enterprises. These new businesses also offer another positive indirect effect to the long run by developing new markets. In other words, the economic effects of entrepreneurial activities create complicated, dynamic patterns in reality, aside from the existing theory. Nevertheless, none of the past studies have analyzed these dynamic effects in China. In addition, the empirical investigation of the relationship between entrepreneurial activity and employment has been rarely reported in China's studies. Most studies on entrepreneurial activity focus on GDP growth effects.This paper investigates how entrepreneurial activity influences employment in China's private economy. This paper employs an empirical approach, which is distinct from previous empirical works in several ways. Our empirical model follows the dynamic model of Fritsch and Mueller (2008), which focuses on the indirect effects of new business creation. In our dynamic analysis, entrepreneurial activity is classified into employers Siying Qiye] and the self-employed [Getihu). In addition, the paper separately conducts analysis for 11 east coast regions and 19 midwest inland regions. Through this procedure, we can clearly see die differences in the employment effects of entrepreneurial activity according to region and business type. …" @default.
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• W3121772011 title "Employment Effect of Entrepreneurial Activity in China’s Private Economy" @default.
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