Administrative burden alleviation and business ecosystem promotion: Evidence from China's company survey

Abstract

This study explores the relationship between public sector reform (PSR) and the reduction of administrative burdens (ABs), expanding the focus from government–citizen to government–business interactions. It introduces a framework aimed at reducing ABs in business settings, linking PSR to improvements in the business ecosystem. Using enterprise survey data, the study's multivariable regression models demonstrate that government reforms significantly enhance the business ecosystem. Recognising potential endogeneity, the study employs the historical timing of port openings in the ancient China as an instrumental variable. The instrumental variable regression analysis confirms the positive impact of PSRs, even after accounting for endogeneity. This research extends administrative burden theory and offers valuable insights for developing countries like China, suggesting that targeted government reforms can foster economic growth.

Points for practitioners

• This paper introduces a new approach for developing countries like China to enhance the business ecosystem through public sector reform.
• Reducing administrative burdens is crucial for improving the business ecosystem and guiding targeted policy reforms.
• Utilising technologies like AI and 5G to reduce administrative burdens is effective, but reforms should be tailored to specific country contexts.