Theory and Empirical Evidence: Theory and Empirical Evidence

Author: Zhang Yongsheng
Publisher:
Publish Date: 2003-03-01
Features: This book primarily studies the internal reasons for changes in enterprise size and its relationship with economic growth. The author first uses data from OECD countries, Asian newly industrialized countries (regions), and China to test two types of economies of scale effects in new trade and growth models. Then, the author provides theoretical explanations for the reasons why empirical evidence does not align with the scale effects in these neoclassical models. Using the Smith-Coase framework, the author attempts to reveal the true driving forces behind economic growth, enterprise institutions, and the significance of changes in enterprise size for economic development. On this basis, the author further explains the emergence and evolution of franchises, the motivations behind corporate mergers and splits, and their implications for productivity improvement using the Smith-Coase framework.