The regional entrepreneurship differences between eastern and western regions of P. R. China: A perspective of social networks

Now, entrepreneurship emerged as a key agenda item of economic policy makers in many countries, especially in transition economies. There are, however, a great gap of entrepreneurship level between the eastern and western regions of China. This paper employs data from the two China planning regions, i.e. eastern, and western regions to study if and how social networks variables influence entrepreneurship in these two regions. We use the probit model that takes care of the regional stratification of the data, and the results of the nonlinear models are carefully interpreted and illustrated. We show that the differences of social networks in these two regions matters for the decision to start new private enterprises, i.e. These findings are helpful for regional policies to encourage new private enterprises firm entry.