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

50 Pages Posted: 20 Mar 2003

See all articles by Mary Hallward-Driemeier

Mary Hallward-Driemeier

World Bank - Research Department; World Bank - Development Research Group (DECRG)

Scott Wallsten

Technology Policy Institute

Lixin Colin Xu

Cheung Kong Graduate School of Business

Date Written: March 2003

Abstract

The importance of a country's "investment climate" for economic growth has recently received much attention. A contribution of this paper is to address the general lack of appropriate data for measuring the investment climate and its effects. In this paper we use a new survey of 1500 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, our 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.

Suggested Citation

Hallward-Driemeier, Mary and Wallsten, Scott and Xu, Lixin Colin, The Investment Climate and the Firm: Firm-Level Evidence from China (March 2003). Available at SSRN: https://ssrn.com/abstract=373946

Mary Hallward-Driemeier

World Bank - Research Department ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/mhallwarddriemeier

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Scott Wallsten

Technology Policy Institute ( email )

409 12th St., SW
Ste 700
Washington, DC 20024
United States
2027309441 (Phone)

HOME PAGE: http://www.wallsten.net

Lixin Colin Xu (Contact Author)

Cheung Kong Graduate School of Business ( email )

1017, Oriental Plaza 1
No.1 Dong Chang'an Street
Beijing
China

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