What determines firms' credit to access in the absence of effective economic institutions: Evidence from China

Arbeitspapier

The existing literature suggests that economic institutions determine the allocation of resources for economic growth. As an important counterexample, although China has one of the world's fastest-growing economies, its legal and financial systems are underdeveloped. With evidence from China, the author confirms that government intervention positively and causally determines firms' access to credit. He further provides evidence that government intervention enables firms' profit through facilitating access to credit. This evidence confirms that the mechanism of government intervention allows firms' access to credit and then enables the firms to obtain relatively large profit. Ultimately, this paper reveals that, in the absence of effective economic institutions, government intervention channels the allocation of capital.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Economics Discussion Papers ; No. 2017-35

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Formal and Informal Sectors; Shadow Economy; Institutional Arrangements ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Financial Institutions and Services: Government Policy and Regulation ; Model Construction and Estimation
• Thema: access to credit ; government intervention ; mediation effect

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Fu, Tong
• Ereignis: Veröffentlichung
• (wer): Kiel Institute for the World Economy (IfW)
• (wo): Kiel
• (wann): 2017

Weitere Informationen

• Handle: http://hdl.handle.net/10419/162576
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ