Financial Constraints in China: the conditioning effect of FDI and State-Owned corporate sector

Sandra Poncet (), Walter Steingress and Hylke Vandenbussche

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Using a unique micro-level data set over the period 1998-2005 on Chinese firms, this paper presents empirical findings on the presence of credit constraints. Our findings are threefold. Firstly, private Chinese firms are credit constrained while state-owned firms and foreign-owned firms in China are not; Secondly, the geographical and sectoral presence of foreign capital alleviates credit constraints faced by private Chinese firms. Thirdly, geographical and sectoral presence of state firms aggravates financial constraints for private Chinese firms ("crowding out").

Keywords: Investment-cash flow sensitivity; China; Firm-level data; Foreign direct investment (search for similar items in EconPapers)
Date: 2010
Note: View the original document on HAL open archive server: https://hal.science/hal-00633806
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Citations: View citations in EconPapers (3)

Published in China Economic Review, 2010, 21 (3), pp.411-422. ⟨10.1016/j.chieco.2010.03.001⟩

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Working Paper: Financial Constraints in China: the conditioning effect of FDI and State-Owned corporate sector (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-00633806

DOI: 10.1016/j.chieco.2010.03.001

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