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Article: Government expropriation and Chinese-style firm diversification

TitleGovernment expropriation and Chinese-style firm diversification
Authors
Issue Date2015
PublisherAcademic 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?
AbstractFirm 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 Identifierhttp://hdl.handle.net/10722/208298
ISSN
2015 Impact Factor: 1.38
2015 SCImago Journal Rankings: 1.066

 

DC FieldValueLanguage
dc.contributor.authorDu, J-
dc.contributor.authorLu, Y-
dc.contributor.authorTao, Z-
dc.date.accessioned2015-02-23T08:20:19Z-
dc.date.available2015-02-23T08:20:19Z-
dc.date.issued2015-
dc.identifier.citationJournal of Comparative Economics, 2015, v. 43 n. 1, p. 155-169-
dc.identifier.issn0147-5967-
dc.identifier.urihttp://hdl.handle.net/10722/208298-
dc.description.abstractFirm 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.languageeng-
dc.publisherAcademic Press. The Journal's web site is located at http://www.elsevier.com/locate/jce-
dc.relation.ispartofJournal of Comparative Economics-
dc.rightsNOTICE: 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.rightsCreative Commons: Attribution 3.0 Hong Kong License-
dc.titleGovernment expropriation and Chinese-style firm diversification-
dc.typeArticle-
dc.identifier.emailTao, Z: ztao@business.hku.hk-
dc.identifier.authorityTao, Z=rp01097en_US
dc.description.naturepostprint-
dc.identifier.doi10.1016/j.jce.2014.07.003-
dc.identifier.hkuros242428-
dc.identifier.volume43-
dc.identifier.issue1-
dc.identifier.spage155-
dc.identifier.epage169-
dc.publisher.placeUnited States-

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