FDI and credit constraints: firm level evidence from China

Sandra Poncet () and Jérôme Héricourt

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

Abstract: In this paper, we assess the success of the ongoing financial system reforms in China by investigating the extent to which firms are financially constrained. We focus on the role played by Foreign Direct Investment (FDI) in funding the Chinese corporate sector, and analyze whether incoming foreign investment in China plays an important role in alleviating domestic firms' credit constraints. Using firm-level data on 1300 domestic companies over the period 2000-2002, we confirm that the development of cross-border relationships with foreign firms helps private domestic firms to bypass both the financial and legal obstacles that they face at home.

Keywords: Financial constraint; Corporate finance; Foreign Direct Investment; China (search for similar items in EconPapers)
Date: 2009
Note: View the original document on HAL open archive server: https://hal.science/hal-00633901
References: View complete reference list from CitEc
Citations: View citations in EconPapers (72)

Published in Economic Systems, 2009, 33 (1), pp.1-21. ⟨10.1016/j.ecosys.2008.07.001⟩

Downloads: (external link)
https://hal.science/hal-00633901/document (application/pdf)

Related works:
Journal Article: FDI and credit constraints: Firm-level evidence from China (2009)
Working Paper: FDI and credit constraints: firm level evidence from China (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-00633901

DOI: 10.1016/j.ecosys.2008.07.001

Access Statistics for this paper

More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().