Becoming global billionaires from mainland China: 2004–2018

Abstract This paper documents the increase in number of global billionaires from mainland China between 2004 and 2018. One key findings is that under conditions an open economy, grassroots billionaire entrepreneurs (e.g., Jack Ma) could mitigate political economy as well financial frictions via capital injections foreign venture capitalists. By building a unique database, I report (i) politically unconnected financed by capitalists are more likely to go public their companies outside (mainly Hong Kong USA), use offshore financing vehicles, enter innovation sector (ii) connected entrepreneurs, however, closely associated with record state-owned enterprise (SOE) restructuring. Plain English Summary The 2018 new phenomenon, which necessitates reassessment crony capitalism arguments, types sources innovation. has important implications for future research on entrepreneurship design relevant policies.