« Key factors affecting business growth in China »
Authors: Li Tao, Zhou Kaiguo and Qiao Genping
Extract from ” Guanli Shijie (Management World) Vol.12, 2005, pp.116-123“
Growth in private sector businesses has a considerable positive effect on economic expansion in a transition-economy country. Mc Millan and Woodruff (2002) conclude that China’s economic boom is attributable in large part to the impressive growth of private sector businesses, a theory which has been confirmed by other studies of the Chinese economy. What factors determine a private sector company’s rate of growth? The results of previous research on the subject point to three possible theories which may answer that question: the “state control” theory, the “investment control” theory and the “regulatory environment control” theory.
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