Sex Imbalance, Marriage Competition, and Entrepreneurship: Evidence from rural China

It is well acknowledged that the entrepreneurship is important to economic development. In this paper, we suggest a gender-related determinant of entrepreneurship, local sex imbalance. Using a 2009 rural finance survey, we examine how this imbalance influences the venturing at the household level in China. We find that households with a son in more sex-imbalanced villages are more likely to have a business. Further examination reveals that these households have any advantage in borrowing.