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Firm Size and Economic Growth in China

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Authors
Lee, KeunXin, Shanji
Issue Date
2015-06
Publisher
Institute of International Affairs, Graduate School of International Studies, Seoul National University
Citation
Journal of International and Area Studies, Vol.22 No.1, pp. 93-112
Keywords
Chinafirm sizeeconomic growthbig businesssmall and medium-sized enterprises (SMEs)average size of firms
Abstract
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.
ISSN
1226-8550
Language
English
URI
https://hdl.handle.net/10371/96598
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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)
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