New Directions in Regional Economic Development

New Directions in Regional Economic Development

The Role of Entrepreneurship Theory and Methods, Practice and Policy

Edited by Sameeksha Desai, Peter Nijkamp and Roger R. Stough

The introduction of endogenous growth theory has led to new interest in the role of the entrepreneur as an agent driving technical change at the local regional level. This book examines theoretical and methodological issues surrounding the interface of the entrepreneur in regional growth dynamics on the one hand and on the other presents illuminating case studies. In total the book’s contributions amplify understanding of such critical issues as the relationship between innovation and entrepreneurship, the entrepreneur’s role in transforming knowledge into something economically useful, and knowledge commercialization with both conceptual and empirical contributions.

Chapter 8: Explaining China’s Economic Growth: Does Entrepreneurship Matter?

Junbo Yu, Shaoming Cheng and Roger R. Stough

Subjects: business and management, entrepreneurship, economics and finance, regional economics, urban and regional studies, regional economics

Extract

Junbo Yu, Shaoming Cheng and Roger R. Stough 8.1 INTRODUCTION Entrepreneurship has been gradually incorporated into neoclassical economic analyses and widely accepted as one of the most important factors for economic growth. Strong empirical evidence of the significant impact of entrepreneurship on economic performance has been found at the firm establishment level (Audretsch, 1995; Caves, 1998; Sutton, 1997) and at the country level, particularly in Organisation for Economic Cooperation and Development (OECD) countries (Audretsch and Fritsch, 2002; Audretsch and Keilbach, 2004, 2005; Fritsch, 1997). However, the existing literature has not paid close attention to two urgent questions. The first one is: ‘How does entrepreneurship endowment and entrepreneurship policy shape regional economies’: and the other is: ‘To what extent does entrepreneurship development contribute to economic growth in transitional countries.’ The purpose of this chapter is, therefore, to provide analysis on how entrepreneurship has contributed to regional economic growth in China, the largest transitional country, from a planned to a more market-oriented economy. This chapter focuses on China’s provincial economic growth from 1996 to 2001, and entrepreneurship is explicitly included into an aggregate production function to test empirically for its contribution to growth. This chapter is important because it complements earlier literature and provides a theoretical and methodological foundation for future comparative studies. This chapter is also important because it offers a timely evaluation of China’s previous entrepreneurship development policies and performance, and thus provides valuable insights for China’s ongoing and future policy adjustment and improvement. 155 M2652 - DESAI PRINT.indd 155...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information