Would Trade Liberalization Promote Entrepreneurship?
- SUN Churen, WANG Song & JIANG Hui
- SUN Churen (Southwestern University of Finance and Economics, 611130；Guangdong University of Foreign Studies, 510420)WANG Song, JIANG Hui(Southwestern University of Finance and Economics, 611130)
Entrepreneurial vitality is the direct basis of the growth of private enterprises. The number of private enterprises in China increases rapidly during the reform and opening-up. Does it mean that trade opening-up will enhance entrepreneurial vitality? Based on the data from the China Household Finance Survey (CHFS) in 2011, 2013 and 2015, this paper conducts an empirical study on the impact of trade liberalization on individuals' entrepreneurial tendency. The study finds trade liberalization significantly increases the entrepreneurial tendency of individuals. Moreover, trade liberalization has a heterogeneous impact on the entrepreneurial tendency of different groups; specifically, it better promotes the entrepreneurship of the female and low-skilled groups and those aged between 16 and 30. Further analysis shows that the promotion effect of trade liberalization on entrepreneurship is mainly reflected in the industries with low-added value. Overall, trade liberalization has enhanced the overall entrepreneurial vitality of China's economy, promoted the balanced employment of all social groups, and contributed to better use of human resources, but the quality of entrepreneurship has yet to be improved further.
- Trade Liberalization, Entrepreneurship, Entrepreneurial Quality, CHFS