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Article: Government expropriation and Chinese-style firm diversification
Title | Government expropriation and Chinese-style firm diversification |
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Authors | |
Keywords | China's private enterprises Economic institutions Firm diversification Government expropriation |
Issue Date | 2015 |
Publisher | Academic Press. The Journal's web site is located at http://www.elsevier.com/locate/jce |
Citation | Journal of Comparative Economics, 2015, v. 43 n. 1, p. 155-169 How to Cite? |
Abstract | Firm diversification across unrelated businesses is prevalent in many emerging economies, in contrast to the practices in developed economies. A fundamental difference between these two types of economies concerns with the existence of sound economic institutions including in particular the institutions constraining government expropriation of private properties. In this paper, using a survey data set of private enterprises in China, we find that severer government expropriation in the form of higher informal levies, extralegal payments, and entertainment fees causes firms to diversify. We then provide two case studies to highlight the extra costs that China’s private entrepreneurs need to bear for doing businesses, and how they can subsequently leverage their relations with government bureaucrats to diversify into various businesses. |
Persistent Identifier | http://hdl.handle.net/10722/208298 |
ISSN | 2023 Impact Factor: 2.8 2023 SCImago Journal Rankings: 1.504 |
ISI Accession Number ID |
DC Field | Value | Language |
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dc.contributor.author | Du, J | - |
dc.contributor.author | Lu, Y | - |
dc.contributor.author | Tao, Z | - |
dc.date.accessioned | 2015-02-23T08:20:19Z | - |
dc.date.available | 2015-02-23T08:20:19Z | - |
dc.date.issued | 2015 | - |
dc.identifier.citation | Journal of Comparative Economics, 2015, v. 43 n. 1, p. 155-169 | - |
dc.identifier.issn | 0147-5967 | - |
dc.identifier.uri | http://hdl.handle.net/10722/208298 | - |
dc.description.abstract | Firm diversification across unrelated businesses is prevalent in many emerging economies, in contrast to the practices in developed economies. A fundamental difference between these two types of economies concerns with the existence of sound economic institutions including in particular the institutions constraining government expropriation of private properties. In this paper, using a survey data set of private enterprises in China, we find that severer government expropriation in the form of higher informal levies, extralegal payments, and entertainment fees causes firms to diversify. We then provide two case studies to highlight the extra costs that China’s private entrepreneurs need to bear for doing businesses, and how they can subsequently leverage their relations with government bureaucrats to diversify into various businesses. | - |
dc.language | eng | - |
dc.publisher | Academic Press. The Journal's web site is located at http://www.elsevier.com/locate/jce | - |
dc.relation.ispartof | Journal of Comparative Economics | - |
dc.rights | NOTICE: this is the author’s version of a work that was accepted for publication in Journal of Comparative Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Comparative Economics, 2015, v. 43 n. 1, p. 155-169. DOI: 10.1016/j.jce.2014.07.003 | - |
dc.rights | This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. | - |
dc.subject | China's private enterprises | - |
dc.subject | Economic institutions | - |
dc.subject | Firm diversification | - |
dc.subject | Government expropriation | - |
dc.title | Government expropriation and Chinese-style firm diversification | - |
dc.type | Article | - |
dc.identifier.email | Tao, Z: ztao@business.hku.hk | - |
dc.identifier.authority | Tao, Z=rp01097 | en_US |
dc.description.nature | postprint | - |
dc.identifier.doi | 10.1016/j.jce.2014.07.003 | - |
dc.identifier.scopus | eid_2-s2.0-85027925477 | - |
dc.identifier.hkuros | 242428 | - |
dc.identifier.volume | 43 | - |
dc.identifier.issue | 1 | - |
dc.identifier.spage | 155 | - |
dc.identifier.epage | 169 | - |
dc.identifier.isi | WOS:000350086800010 | - |
dc.publisher.place | United States | - |
dc.identifier.issnl | 0147-5967 | - |