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Urban Employment in Small Businesses and the Level of Economic Development: Evidence from C hinese Cities
Author(s) -
MorenoMonroy Ana I.,
Yu Shu,
Euse Victoria
Publication year - 2016
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/grow.12120
Subject(s) - restructuring , tertiary sector of the economy , economic restructuring , business , service (business) , panel data , economic growth , local economic development , state (computer science) , economic geography , economics , marketing , finance , algorithm , computer science , econometrics
Based on a panel of C hinese cities over the period 2004–2009, we analyze the relationship between the level of economic development and the share of urban employment in small businesses. We find that this relationship can be described by an inverted U ‐shape. In cities with lower levels of economic development, the restructure of the state sector along with a booming service industry is associated with a higher share of employment in small businesses. On the other hand, in cities with higher levels of economic development, a more vibrant manufacturing sector is related to a lower share of employment in small businesses.