Institutional Changes Affecting Entrepreneurship in China

Abstract

Institutions influencing entrepreneurship are undergoing significant transformation in China. During the Mao era, private entrepreneurship was virtually eradicated and was a political taboo. As reflected in the macro-level economic data, there has been an evolution of entrepreneur-friendly institutions in the country. A constellation of factors linked to China's global integration is pushing through a fundamental changes in institutions related to Chinese entrepreneurship. The logics or governance structures and organizing principles related to entrepreneurship are rapidly changing in the country. This paper examines forces influencing the diffusion of instrumental values promoting entrepreneurship among Chinese institutional actors.

Keywords: China, institutions, entrepreneurship, legitimacy, instrumental values, deinstitutionalization

JEL Classification: M13