The Investment Climate and the Firm : Firm-Level Evidence from China

The importance of a country's "investment climate" for economic growth has recently received much attention. The authors address the general lack of appropriate data for measuring the investment climate and its effects. The authors use a new survey of 1,500 Chinese enterprises in five cities to more precisely define and measure components of the investment climate, highlight the importance of firm-level data for rigorous analysis of the investment climate, and investigate empirically the effects of this comprehensive set of measures on firm performance in China. Overall, their firm-level analysis reveals that the main determinants of firm performance in China are international integration, entry and exit, labor market issues, technology use, and access to external finance.

Bibliographic Details

Main Authors:	Wallsten, Scott, Hallward-Driemeier, Mary, Xu, Lixin Colin
Language:	English en_US
Published:	World Bank, Washington, DC 2003-03
Subjects:	ACCESS TO INFORMATION, BANK LOANS, BARRIERS TO ENTRY, CAPITAL EQUIPMENT, CAPITAL USE, CITIES, COLLABORATION, COMMUNICATION TECHNOLOGY, COMPETITIVENESS, CONSUMERS, DECENTRALIZATION, DOMESTIC FIRMS, DOMESTIC INVESTORS, DOMESTIC MARKET, ECONOMIC CONDITIONS, ECONOMIC GROWTH, ECONOMIC PERFORMANCE, EMPIRICAL ANALYSIS, EMPIRICAL RESEARCH, EMPLOYMENT, EMPLOYMENT GROWTH, ENVIRONMENTAL PROBLEMS, EXCHANGE RATE, EXCHANGE RATE POLICIES, EXPORT MARKETS, EXPORTS, FINANCIAL MARKETS, FOREIGN FIRMS, FOREIGN INVESTORS, FOREIGN OWNERSHIP, GLOBAL ECONOMY, GROWTH POTENTIAL, GROWTH RATES, IMPORT COMPETITION, IMPORTS, INCOME, INNOVATION, INTEGRATED MARKETS, INVESTMENT CLIMATE, INVESTMENT CLIMATES, INVESTMENT LEVELS, INVESTMENT RATE, INVESTMENT RATES, ITC, LABOR MARKET, LARGE SHAREHOLDERS, LEGAL SYSTEMS, LIBERAL POLICIES, LOCAL FIRMS, MACROECONOMIC POLICIES, MANAGERS, MARKET FAILURES, MARKET POWER, MARKET SHARE, NATIONAL LAWS, NATURAL ENDOWMENTS, PER CAPITA INCOME, PER CAPITA INCOMES, PHONES, POLICY MAKERS, POSITIVE EFFECTS, PRIVATE INVESTMENT, PRIVATE SECTOR, PRODUCERS, PRODUCTION FUNCTION, PRODUCTIVITY, PROTECTIONISM, REGIONAL DIFFERENCES, REGIONAL LEVEL, REGRESSION ANALYSIS, REGULATORY AGENCIES, REGULATORY ISSUES, SCALE ECONOMIES, SIDE PAYMENTS, TAX RATES, TAXATION, TELEPHONES, TOTAL FACTOR PRODUCTIVITY, TRANSITION COUNTRIES, TRANSITION ECONOMIES, WORKERS, WORKING CONDITIONS BUSINESS ENVIRONMENT, INVESTMENT ENVIRONMENT, INTERNATIONAL INTEGRATION, ACCESS TO CREDIT, EXTERNAL FINANCE, REGULATORY FRAMEWORK, ADMINISTRATIVE CONSTRAINTS,
Online Access:	http://documents.worldbank.org/curated/en/2003/03/2183612/investment-climate-firm-firm-level-evidence-china https://hdl.handle.net/10986/18280
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