Do State and Party Interventions Help Firm Performance in China?
Victor Nee , Cornell University, Sonja Opper, Lund University, and Sonia M.L. Wong, Lingnan University
China’s state-guided economic miracle has revitalized a long-standing and unsettled debate about the role of government in transformative economic development. In a firm-level study of corporate governance, we examine whether direct state involvement positively contributes to the economic performance of newly incorporated firms in China’s urban economy. We show that direct governance interventions are likely to yield negative economic effects at the firm level. Our findings indicate that other types of government interventions external to the firm explain the success of China’s developmental state in promoting rapid economic growth.
© The International Association for Chinese Management