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The investment climate and the firm : firm-level evidence from China, Volume 1
 
Author:Hallward-Driemeier, Mary; Wallsten, Scott; Lixin Colin Xu; Country:China;
Date Stored:2003/04/11Document Date:2003/03/31
Document Type:Policy Research Working PaperSubTopics:Environmental Economics & Policies; Economic Theory & Research; Health Monitoring & Evaluation; Trade and Regional Integration; ICT Policy and Strategies
Language:EnglishRegion:East Asia and Pacific
Report Number:WPS3003Sub Sectors:General finance sector
Collection Title:Policy, Research working paper series ; no. WPS 3003Volume No:1

Summary: The importance of a country's "investment climate" for economic growth has recently received much attention. The authors address the general lack of appropriate data for measuring the investment climate and its effects. The authors use a new survey of 1,500 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, their 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.

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