Business friendliness: A double-edged sword

Mengyin Li, Phillip H. Phan, Xian Sun

Research output: Contribution to journalArticlepeer-review

Abstract

In this paper, we test the hypothesis that business-friendly local-government policies combined with weak legal institutions lead to lower economic welfare in the form of greater fraud activity. Using data of almost 3000 failed peer-to-peer (P2P) lending platforms in China, labeled as “runaways”, we find that they are more prevalent in provinces with business-friendly policies with weak law-enforcement regimes.

Original languageEnglish (US)
Article number1819
Pages (from-to)1-22
Number of pages22
JournalSustainability (Switzerland)
Volume13
Issue number4
DOIs
StatePublished - Feb 2 2021

Keywords

  • Business friendliness
  • Emerging markets
  • Informal institutions
  • Law enforcement
  • P2Ps
  • Sustainable economic growth

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Renewable Energy, Sustainability and the Environment
  • Management, Monitoring, Policy and Law

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