Development And Determinants Of Self-employment

In recent years,the rapid development of self-employment activity has attracted not only the attention of scholars both at home and abroad,but also the attention of policy makers.One of the reasons is that self-employment is developing rapidly both in developed and developing countries,and another reason which is more important is that the development of self-employment plays a significant role in fostering the spirit of entrepreneurship,improving the employment problem,improving the capital market,improving the labor market mechanism and realizing the overall development of the economy.In fact,In recent decades,many industrialized countries are focusing more on the development of small and medium enterprises and the problem of self-employment(Cowling,1997).Many Countries and regions have developed a number of supportive policies,such as giving the unemployed a certain amount of small loans to help their self-employed entrepreneurs,and some preferential policies to the private enterprise.As a matter of fact,In the existing literature,most of the scholars focus on the trend and characteristics of self-employment in developed economies or in less developed countries.As to the experience in emerging countries,it has not been fully validated.And domestic researches mainly focus on the micro level analysis,as a result,we try to analyze the influence factors of self-employment from the perspective of macro economy to enrich the content of this part.In general,the data from the provincial level is used to analyze the macro economic factors and social factors that influence self-employment,with the emphasis on analysis of the relationship between self-employment and economic development.Besides,this paper also pays attention to what factors are influencing the development of self-employment after adding other factors.Analysis of these factors and their relationship can help us to understand the role of self-employment in the development of China's economy,and to formulate more effective measures.In this paper,empirical research methods are used.The model is constructed based on panel data,and the data is analyzed through statistical software.The conclusion is drawn after testing the related hypotheses.This paper is divided into five parts,Specific content as follows:Chapter one:introduction.This part mainly introduces the background and significance of this study.And it concludes the research status at home and abroad,overview of the research methods and main contents,and the possible innovations and deficiencies.Chapter two:The concept,development and theoretical basis of self-employment.This part chiefly focuses on the definition of self-employment at home and abroad and the overall development trend of self-employment in China and the development characteristics of all provinces.Besides,this part analyzes the choice of self-employment from the perspective of human capital theory and social capital theory.Chapter three:Analysis of the factors that may influence self-employment based on theoretical review,analysis of the possible relationship,and present of the relevant hypothesis.In this part,we assume that self-employment is positively related to economic development,and is influenced by the unemployment rate,industry structure,market competition,education level and population density.Chapter four:Empirical research.In this part,according to regression analysis and panel data,the relationship between self-employment and its influencing factors is verified and the conclusion is reached.And this part mainly verify the relationship between self-employment and economic development and the relationship between the two after adding other factors.Chapter five:Main conclusions and related policy recommendations.In this part,the conclusion reveals that the level of economic development has positive effect on self-employment,which is the foundation of the relevant recommendations.The innovation of this paper lies in:first,in the existing literature,the experience of the emerging countries has not been fully verified,we analyze it with China's self-employment to enrich this part of the content;second,in the existing literature,most of them analyze self-employment from the micro level(such as education,demographic characteristics,family environment),however,this paper analyzes the Chinese self-employment from a macroeconomic perspective,which is conducive to grasp the characteristics and development trend on the whole;lastly,the difference of the economic development level of provinces' development is used to analyze the self-employment,which helps to develop,evaluate,and supervise the actual differences.The deficiency of this article lies in:first,due to the macro economic and social factors,there are many omitted variables,and some factors cannot find appropriate data to do statistical indicators,which will affect the accuracy of the empirical results;second,due to the limitation of the available data,the statistical data of some control variables cannot accurately describe the variables,such as the unemployment rate,which will result in a certain deviation from the actual guidance;lastly,due to the improvement of measurement tools and methods and the inconformity of statistical data,there are some errors in the results obtained in recent years and far years,and also some deviation between provinces exists,which will affect the results of data analysis.