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Seoul Journal of Economics
[ Article ]
Seoul Journal of Economics - Vol. 25, No. 2, pp.177-206
ISSN: 1225-0279 (Print)
Print publication date 30 May 2012
Received 29 Jul 2011 Revised 12 Dec 2011 Accepted 19 Dec 2011

Employment Effect of Entrepreneurial Activity in China’s Private Economy

Sungho Rho ; Jian Gao
Corresponding Author, Ph.D. Candidate, Department of Innovation and Entrepreneurship, School of Economics and Management, Tsinghua University, Weilun Building 413, Beijing 100084, China, Tel: +86-13366139140, Fax: +86-10-62784544 aureliano@hanmail.net
Professor, Department of Innovation and Entrepreneurship, Tsinghua University, Weilun Building 375, Beijing 100084, China, Tel: +86-10-62789932, Fax: +86-10-62784544 gaoj@sem.tsinghua.edu.cn

JEL Classification: R11, R12

Abstract

This paper presents an extension to the empirical research of Fritsch and Mueller (2008) investigating how entrepreneurial activity affects employment in China’s private economy. Both static and dynamic effects are analyzed using data from 31 Chinese provinces during the 2000 to 2008 period. The main findings are as follows: (1) entrepreneurial activity makes a considerable contribution to job creation, (2) an S-shaped dynamic pattern of job creation effect due to entrepreneurial activity is observed to be similar to that found by previous research, and (3) the employment effect of entrepreneurial activity differs according to business type and region.

Keywords:

Employment effect, Entrepreneurial activity, China, Almon Distributed Model

Acknowledgments

An earlier version of this paper was presented at the 12th International Convention of the East Asian Economic Association, held at Ewha Womans University, Seoul, Korea, Oct 2010. We would like to thank comments by, or discussion with, Dararatt Anantanasuwong, Isao Horino, and other participants at the meeting. And we are grateful to Prof. Lee, Yoon Jai, Prof. Lee, Zi Nai, and two anonymous referees for useful suggestions and comments on earlier draft.

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