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Kato, "Becoming a successful capitalist in China: Chinese private entrepreneurs and their relationship to the state," 2001

USC thesis in Politics.
August 24, 2009

Yayoi Kato, M.A.

Abstract (Summary)
The previous research suggests that more profitable private firms develop closer relationships to the party. Considering the situation from private firms' side, however, the close ties to the state are important for the firms to be more profitable. The thesis mainly examines the reciprocal aspect of the party-business alliances, using a 1993 nationwide survey of private firms operating in China. Two sets of hypotheses and causal models are created and the effects of firms' party connection on performance--and vice versa--are separately analyzed. The major determinants of each are categorized through explanatory factor analysis to specify the different types of alliances formed between the party and particular firms. As a result, at least four different routes leading Chinese capitalists to business successes emerged.

Advisor: Evans, Chris