Eeconomic Regulation Intensity To The Public Entrepreneurship Frequency Based On The Quantile Regression

Premier Li Keqiang of the State Council unequivocally suggested "public entrepreneurship and innovation" in the government work report of 2015 "two sessions". It aims to build a good business environment from the national level to stimulate entrepreneurship and innovation of the Chinese nation. This shows a good interaction between government and entrepreneurial activity, so we can effectively realize the social value of entrepreneurship, so as to promote sound and rapid development of the country. Entrepreneurship as a means to promote economic, technical and social progress has created significant economic and social value for humanity in the process of globalization. Entrepreneurial activity tends to create new business opportunities to reduce unemployment and increase economic development and growth of a region, the creation of new enterprises is an important factor in promoting specific regional economic development and growth. Government plays a key role in establishing dynamic business ecosystem. Government should formulate various rules to identify and clarify property rights and reduce costs of dispute settlement, increased predictability of economic transactions. If there is no good rule or not fair implementation of the rules, start-up and growth of SMEs will face difficulties, while most of the world economies, it is small and medium enterprises to promote economic growth, job creation engine.Rational government economic regulation is the foundation of new businesses created. Right government economic regulation can promote good ideas take root, create new enterprises to increase employment opportunities and to improve people’s living standards. However, if a local government regulation of the economy makes the creation of a new business is difficult, so good ideas may never be realized, resulting in missed an important opportunity. Heavy government economic regulation will make budding entrepreneurs will retreat, they might give up business.In the research literature at home and abroad, scholars tend to study the government’s economic regulation and entrepreneurial environment of independent, lacking of relative influence mechanism between them, especially from a global perspective. Therefore, from a global perspective, in this paper, we select the "New business density" data and the related indicators that reflects the strength of the government’s economic regulation in 98 countries from 2008-2012 from the "Doing Business Report",and then makes an empirical analysis on the relationship between them. First, we use the factor analysis method to reduce dimension of indicators that reflects the strength of the government’s economic regulation, and then use quintile regression methods to analyze the effect of the government’s economic regulation on entrepreneurship.Through the analysis of the empirical results, conclusions of this study are:(1)The public entrepreneurship frequency showing a significant spike right tail distribution, it is suitable for using quantile regression analysis;(2) Overall, government economic regulation gradually decreased, the future trend of world economic development is bound to weaken the strength of the government’s economic regulation, liberalization of restrictions on entrepreneurship, the release of the vitality of small and medium business, create a free healthy and orderly economic management surroundings;(3) By comparing, we found that the significance of the coefficient of quantile regression is better than general linear regression, indicating that the quantile regression model can better analyze the influence of government’s economic regulation to the public entrepreneurship frequency. Factors in the strength of the government’s economic regulation, protection of minority investors and getting credit have positive marginal impacts on the public entrepreneurship frequency, other factors(trading across borders) have a negative marginal impact on public entrepreneurship frequency;(4)The marginal effect of the government’s economic control over the public entrepreneurship frequency increases with the quantiles gradually increased(the absolute value of the coefficient becomes larger), indicating that in areas with higher public entrepreneurial frequency, the impact of the government’s economic control over the public entrepreneurship activity is stronger.