S-Space Graduate School of International Studies (국제대학원) Dept. of International Studies (국제학과) Journal of International and Area Studies (JIAS) Journal of International and Area Studies vol.22 (2015)
Firm Size and Economic Growth in China
- Issue Date
- Institute of International Affairs, Graduate School of International Studies, Seoul National University
- Journal of International and Area Studies, Vol.22 No.1, pp. 93-112
- China ; firm size ; economic growth ; big business ; small and medium-sized enterprises (SMEs) ; average size of firms
- This paper investigates the roles and significance of firms of various sizes in economic growth in China. This paper finds that the small firms have been the engine of growth in China, as increasing their share has been positively associated with economic growth. In contrast, we find that increasing the share as well as the number of big businesses have a significant and negative effect on economic growth, and that increasing the share of the medium-sized firms have negative or insignificant effect on economic growth in China. Most interestingly we find that the positive contribution of small firms and their increasing shares are largely owing to the expansion of the average size of them, rather than the increase in their absolute numbers of which the impact on growth is insignificant.
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