Very heterogeneous patterns of firm employment growth characterize the Chinese provinces, suggesting the existence of a relationship between these and regional factors. This empirical work explores this topic by providing novel evidence of the role played by regional institutional and regional factors in firm employment growth in China during the decade 1998–2007, an important period in the Chinese transition towards a market economy. The results show that controlling for the internal determinants of firm performance, the firms located in provinces converging faster towards a market economy, exhibiting relatively better patterns (in terms of agglomeration, endowment of human capital, innovation and environmental protection) tend to expand their employment relatively more. These findings confirm the existence of a macro–micro-connection as to what firm heterogeneity is concerned, as they reveal a differential growth channel along the regional dimension. In particular, local progress in government–market relationships appears as the most relevant dimension of marketization process. Given the regionally decentralized institutional system in China and considering its process of transformation, these findings inform local authorities concerned with the promotion of regional employment.

Firm employment growth in China: The role of marketization and regional economic factors / Bin, P.; Chen, Xianjie; Fracasso, A.; Tomasi, C.. - In: GROWTH AND CHANGE. - ISSN 0017-4815. - 2020, 51:1(2020), pp. 402-439. [10.1111/grow.12348]

Firm employment growth in China: The role of marketization and regional economic factors

Bin P.;Chen, Xianjie;Fracasso A.;Tomasi C.
2020-01-01

Abstract

Very heterogeneous patterns of firm employment growth characterize the Chinese provinces, suggesting the existence of a relationship between these and regional factors. This empirical work explores this topic by providing novel evidence of the role played by regional institutional and regional factors in firm employment growth in China during the decade 1998–2007, an important period in the Chinese transition towards a market economy. The results show that controlling for the internal determinants of firm performance, the firms located in provinces converging faster towards a market economy, exhibiting relatively better patterns (in terms of agglomeration, endowment of human capital, innovation and environmental protection) tend to expand their employment relatively more. These findings confirm the existence of a macro–micro-connection as to what firm heterogeneity is concerned, as they reveal a differential growth channel along the regional dimension. In particular, local progress in government–market relationships appears as the most relevant dimension of marketization process. Given the regionally decentralized institutional system in China and considering its process of transformation, these findings inform local authorities concerned with the promotion of regional employment.
2020
1
Bin, P.; Chen, Xianjie; Fracasso, A.; Tomasi, C.
Firm employment growth in China: The role of marketization and regional economic factors / Bin, P.; Chen, Xianjie; Fracasso, A.; Tomasi, C.. - In: GROWTH AND CHANGE. - ISSN 0017-4815. - 2020, 51:1(2020), pp. 402-439. [10.1111/grow.12348]
File in questo prodotto:
File Dimensione Formato  
grow.12348.pdf

accesso aperto

Tipologia: Versione editoriale (Publisher’s layout)
Licenza: Tutti i diritti riservati (All rights reserved)
Dimensione 641.92 kB
Formato Adobe PDF
641.92 kB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11572/251715
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 8
  • ???jsp.display-item.citation.isi??? 8
social impact