EconPapers    
Economics at your fingertips  
 

Does the Chinese Banking System Promote the Growth of Firms?

Panicos Demetriades (), Jun Du (), Sourafel Girma () and Chenggang Xu

No 36, WEF Working Papers from ESRC World Economy and Finance Research Programme, Birkbeck, University of London

Abstract: Using a large panel dataset of Chinese manufacturing enterprises during 1999-2005, which accounts for over 90% of China’s industrial output, and robust econometric procedures we show that the Chinese banking system has helped to support the growth of both firm value added and TFP. We find that access to bank loans is positively correlated with future value added and TFP growth. We also find that firms with access to bank loans tend to grow faster in regions with greater banking sector development. While the effects of bank loans on firm growth are more pronounced in the case of purely private-owned and foreign firms, they are positive and statistically significant even in the case of state-owned and collectively-owned firms. We show that excluding loss-making firms from the sample does not change the qualitative nature of our results.

Keywords: Chinese banking system development; value added and TFP growth; panel dataset (search for similar items in EconPapers)
JEL-codes: E44 O53 (search for similar items in EconPapers)
Date: 2008-02
New Economics Papers: this item is included in nep-ban, nep-cna, nep-cse, nep-dev, nep-eff, nep-fdg, nep-mac and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
http://www.worldeconomyandfinance.org/working_pape ... per_PDFs/WEF0036.pdf (application/pdf)

Related works:
Working Paper: Does the Chinese Banking System Promote the Growth of Firms? (2008) Downloads
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:wef:wpaper:0036

Access Statistics for this paper

More papers in WEF Working Papers from ESRC World Economy and Finance Research Programme, Birkbeck, University of London Contact information at EDIRC.
Bibliographic data for series maintained by Tim Byne (). This e-mail address is bad, please contact .

 
Page updated 2020-07-06
Handle: RePEc:wef:wpaper:0036