The allocation of entrepreneurial efforts in a rent-seeking society: Evidence from China

There are four types of entrepreneurial efforts in a rent-seeking society. * Entrepreneurs pursue rent-seeking and reject rent-extraction against politicians. * Ordinary entrepreneurs would desire better institutional environment. * Entrepreneurs prefer political connections if institutional improvement is unavailable. * China is trapped in a rent-seeking society. This paper considers four types of entrepreneurial efforts: productive activities, aggressive rent seeking, defense against rent extraction, and leisure. It examines how entrepreneurs allocate efforts when facing dual-dealing relatio... Mehr ...