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Government-Enterprise Connection - Entrepreneur and Private Enterprise Development in China (Hardcover, 1st ed. 2016)
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Government-Enterprise Connection - Entrepreneur and Private Enterprise Development in China (Hardcover, 1st ed. 2016)
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This book is an empirical study on the relationship between private
enterprises, entrepreneurs and the government in P. R. China. The
two authors conducted a detailed survey of enterprises and
entrepreneurs in Liuzhou, Guangxi Zhuang Autonomous Region, China.
Although it was only conducted in a medium sized city, the survey
provides a rare source of information on matched
entrepreneur-enterprise pairs. It provides detailed information on
management, performance, enterprise-government relationship, as
well as entrepreneurs' personal information and measurements of
various psychological parameters. With this first-hand information,
the authors analyzed several interesting issues concerning
enterprise-entrepreneur-government relationships. Readers will gain
an understanding of the following topics: Why and how does China
have such special enterprise-entrepreneur-government relationships?
Do enterprises' political connections in the form of entrepreneurs'
political status help improve the performances of these
enterprises? Which of the surveyed entrepreneurs could become
members of the People's Congress and the People's Political
Consulting Conference? How do entrepreneurs feel when they are
faced with greater government intervention? How will China move
ahead in the ongoing reform and development in the light of the
enterprise-entrepreneur-government relationship? This book examines
the way in which China's enterprise-entrepreneur-government
relationship helps enterprises develop in a transitional market. In
the appendix to this book, one of the authors, Ming Lu, provides
evidence, based on data from listed companies, that having
political connections can help enterprises enter the markets of
provinces other than their place of registration. However, this
political connection also distorts the market by giving the
entrepreneurs more opportunities to develop their business. At the
same time, those entrepren eurs who face interventions from the
government also shoulder greater costs in the form of loss of
psychological happiness. The inference of this book is that at some
point in the foreseeable future, China will gradually build its
market system and integrate its domestic markets, so that private
enterprises will no longer rely so heavily on their political
connections.
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