The investment climate and the firm : firm-level evidence from China

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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;	Collection Title:	Policy, Research working paper series ; no. WPS 3003
Country:	China;	Date Stored:	2003/04/11
Document Date:	2003/03/31	Document Type:	Policy Research Working Paper
Language:	English	Region:	East Asia and Pacific
Report Number:	WPS3003	Sub Sectors:	General finance sector
SubTopics:	Environmental Economics & Policies; Economic Theory & Research; Health Monitoring & Evaluation; Trade and Regional Integration; ICT Policy and Strategies	Volume 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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