Business friendliness: A double-edged sword

Mengyin Li; Phillip H. Phan; Xian Sun

doi:10.3390/su13041819

Business friendliness: A double-edged sword

Mengyin Li, Phillip H. Phan, Xian Sun

Carey Business School

Research output: Contribution to journal › Article › peer-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 language	English (US)
Article number	1819
Pages (from-to)	1-22
Number of pages	22
Journal	Sustainability (Switzerland)
Volume	13
Issue number	4
DOIs	https://doi.org/10.3390/su13041819
State	Published - Feb 2 2021

Keywords

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

ASJC Scopus subject areas

Computer Science (miscellaneous)
Environmental Science (miscellaneous)
Geography, Planning and Development
Energy Engineering and Power Technology
Hardware and Architecture
Management, Monitoring, Policy and Law
Computer Networks and Communications
Renewable Energy, Sustainability and the Environment

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10.3390/su13041819

Cite this

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KW - Informal institutions

KW - Law enforcement

KW - P2Ps

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Business friendliness: A double-edged sword

Abstract

Keywords

ASJC Scopus subject areas

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