Government Regulations and Site Selection of New Enterprises——The Micro Evidence from Chinese Industrial Enterprises
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Abstract Based on the microdata of new industrial enterprises in 120 cities of China, the paper applies Negative Binomial Model to estimate the impacts of the government regulations on the site selection of new industrial enterprises. The empirical analysis shows that the government regulations have significantly deterrent effect on new firm’s location decision. At the same time, the deterrent effects show heterogeneity when it comes to firms under different ownership. On one hand, government regulations have significantly deterrent effect on non-state-owned firms in their sites selection while having no significant effect on state-owned ones. On the other hand, government regulations have significantly deterrent effect on both domestic-funded and foreign-invested firms, but the effect on foreign owned firms is greater. This means the reform of streamlining administration and delegating government powers will attract more new enterprises and promote regional economic development.
FAN Gong-Zhong,HU Cao. Government Regulations and Site Selection of New Enterprises——The Micro Evidence from Chinese Industrial Enterprises. Economic Survey, 2017, 34(5): 081.
2017, Vol. 34 
