Employment Effect of Entrepreneurial Activity in Chinas Private Economy

Abstract

This paper presents an extension to the empirical research of Fritsch

and Mueller (2008) investigating how entrepreneurial activity affects

employment in Chinas private economy. Both static and dynamic

effects are analyzed using data from 31 Chinese provinces during the

2000 to 2008 period. The main findings are as follows: (1) entrepreneurial

activity makes a considerable contribution to job creation, (2)

an S-shaped dynamic pattern of job creation effect due to entrepreneurial

activity is observed to be similar to that found by previous

research, and (3) the employment effect of entrepreneurial activity

differs according to business type and region.