« Key factors affecting business growth in China »
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.
