Recently, two research articles of IQDS, “Does government paternalistic care promote entrepreneurship in China? Evidence from the China Employer-Employee Survey” and “Understanding the divergence of manufacturing enterprises’ profitability in China”, were published in China Economic Journal, an English journal in China published by the renowned Routledge Journals, an imprint of Taylor & Francis Group.
The article “Does government paternalistic care promote entrepreneurship in China? Evidence from the China Employer-Employee Survey” written by Cheng Hong, Hu Dezhuang and other IQDS members was published online on January 29, 2017. It examines whether government paternalistic care exerts positive effects on entrepreneurship in China, and the channels through which paternalistic care affects entrepreneurship, using data from the 2015 baseline of the China Employer-Employee Survey (CEES). The data suggests that over 70% of manufacturing firms received at least one type of government paternalistic care, though the distributions are different depending on the firm’s size, ownership, industry, firm and entrepreneur’s age. The empirical analysis indicates that government paternalistic care negatively affects entrepreneurship by diminishing innovation capability. Human capital and imported intermediate goods should be the driving forces for a firm’s development, but government paternalistic care has a counterproductive effect on those two factors, thereby impeding entrepreneurship. The results show that those good intentions have gone awry. The government should gradually terminate its paternalistic policies for firms, and firms need to promote their own solid innovation capability.
The article “Understanding the divergence of manufacturing enterprises’ profitability in China” written by Yu Hongwei, Chen Wenjin and other IQDS members was published online on February 2, 2017. Based on the study, it is found that in 2014, 50.1% of China's manufacturing enterprises has a negative profit growth rate, while 32.7% of them has a profit growth rate higher than 20%. It is suggested that the profitability of Chinese manufacturing enterprises significantly presents big divergence. It is also pointed out that the different adoption of strategies in diverse actions may be the possible causes of profitability divergence.
