The stained China miracle_ Corruption, regulation, and firm performance英文文献资料.pdf

Economics Letters 123 (2014) 366–369 Contents lists available at ScienceDirect Economics Letters journal homepage: /locate/ecolet The stained China miracle: Corruption, regulation, and firm performance Ting Jiang a,b , Huihua Nie a,∗ a School of Economics, Renmin University of China, China b Department of Economics, Hong Kong University of Science and Technology, Hong Kong h i g h l i g h t s • Regional corruptiveness has a positive effect on the profitability of private firms. • The effect does not exist when state-owned firms are concerned. • A natural experiment shows that corruption helps private firms circumvent regulation. • We offer an understanding of the high-growth miracle of China with high corruption. a r t i c l e i n f o a b s t r a c t Article history: Regional corruptness in China has a positive effect on the profitability of private firms, but not that of Received 25 April 2013 state-owned firms. A natural experiment of exogenous trade policy change suggests that corruption may Received in revised form help private firms circumvent government regulation. 24 March 2014 © 2014 Elsevier B.V. All rights reserved. Accepted 30 March 2014 Available online 8 April 2014 JEL classification: H8 L2 L5 P3 Keywords: Corruption Regulation Ownership China 1. Introduction regularity. First, existing studies are often based on cross-country