Business Friendliness: A Double-Edged Sword
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...
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Published in | Sustainability Vol. 13; no. 4; p. 1819 |
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Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
Basel
MDPI AG
08.02.2021
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Subjects | |
Online Access | Get full text |
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Summary: | 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. |
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ISSN: | 2071-1050 2071-1050 |
DOI: | 10.3390/su13041819 |