Advanced Search
MyIDEAS: Login to save this article or follow this journal

Bank discrimination in transition economies: ideology, information, or incentives?

Contents:

Author Info

  • Brandt, Loren
  • Li, Hongbin

Abstract

We study bank discrimination against private firms in transition countries. Theoretically, we show that banks may discriminate for non-profit reasons, but this discrimination diminishes with a bank’s incentives and human capital. Employing matching bank-firm data from China, we empirically examine the extent, sources and consequences of discrimination. Our unique survey design allows us to disentangle sample truncation, omitted variable bias, and endogeneity issues. Our empirical findings confirm the theoretical predictions. We also find that as a result of discrimination, private firms resort to more expensive trade credits.

(This abstract was borrowed from another version of this item.)

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6WHV-49H1BDD-3/2/bb1c7713b77e2c7b363e0a2dde3cceff
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 31 (2003)
Issue (Month): 3 (September)
Pages: 387-413

as in new window
Handle: RePEc:eee:jcecon:v:31:y:2003:i:3:p:387-413

Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622864

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 104(5), pages 869-95, October.
  2. Yuanzheng Cao & Yingyi Qian & Barry R. Weingast, 1999. "From federalism, Chinese style to privatization, Chinese style," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 7(1), pages 103-131, March.
  3. Simon Johnson & John McMillan & Christopher Woodruff, 2001. "Courts and Relational Contracts," NBER Working Papers 8572, National Bureau of Economic Research, Inc.
  4. Hongbin Li & Scott Rozelle, 2003. "Privatizing Rural China: Insider Privatization, Innovative Contracts, and the Performance of Township Enterprises1," Discussion Papers, Chinese University of Hong Kong, Department of Economics 00001, Chinese University of Hong Kong, Department of Economics.
  5. Schwab, Stewart, 1986. "Is Statistical Discrimination Efficient?," American Economic Review, American Economic Association, American Economic Association, vol. 76(1), pages 228-34, March.
  6. Jiahua Che & Yingyi Qian, 1997. "Insecure Property rights and Government Ownership of Firms," William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan 51, William Davidson Institute at the University of Michigan.
  7. David G. Blanchflower & Phillip B. Levine & David J. Zimmerman, 2003. "Discrimination in the Small-Business Credit Market," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 85(4), pages 930-943, November.
  8. William A. Darity & Patrick L. Mason, 1998. "Evidence on Discrimination in Employment: Codes of Color, Codes of Gender," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 12(2), pages 63-90, Spring.
  9. Kenneth J. Arrow, 1998. "What Has Economics to Say about Racial Discrimination?," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 12(2), pages 91-100, Spring.
  10. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 12(2), pages 101-116, Spring.
  11. John Yinger, 1998. "Evidence on Discrimination in Consumer Markets," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 12(2), pages 23-40, Spring.
  12. Loren Brandt & Xiaodong Zhu, 2000. "Redistribution in a Decentralized Economy: Growth and Inflation in China under Reform," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 108(2), pages 422-451, April.
  13. Simon Johnson & John McMillan & Christopher Woodruff, 2002. "Property Rights and Finance," American Economic Review, American Economic Association, American Economic Association, vol. 92(5), pages 1335-1356, December.
  14. Helen F. Ladd, 1998. "Evidence on Discrimination in Mortgage Lending," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 12(2), pages 41-62, Spring.
  15. Fafchamps, Marcel, 2000. "Ethnicity and credit in African manufacturing," Journal of Development Economics, Elsevier, Elsevier, vol. 61(1), pages 205-235, February.
  16. Loren Brandt & Xiaodong Zhu, 2003. "What ails China?," The Region, Federal Reserve Bank of Minneapolis, Federal Reserve Bank of Minneapolis, issue Dec, pages 48-54, 56-5.
  17. Munnell, Alicia H. & Geoffrey M. B. Tootell & Lynn E. Browne & James McEneaney, 1996. "Mortgage Lending in Boston: Interpreting HMDA Data," American Economic Review, American Economic Association, American Economic Association, vol. 86(1), pages 25-53, March.
  18. Albert Park & Loren Brandt & John Giles, 1997. "Giving Credit Where Credit is Due: The Changing Role of Rural Financial Institutions in China," William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan 71, William Davidson Institute at the University of Michigan.
  19. Glenn C. Loury, 1998. "Discrimination in the Post-Civil Rights Era: Beyond Market Interactions," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 12(2), pages 117-126, Spring.
  20. Chen, Hongyi & Rozelle, Scott, 1999. "Leaders, managers, and the organization of township and village enterprises in China," Journal of Development Economics, Elsevier, Elsevier, vol. 60(2), pages 529-557, December.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:jcecon:v:31:y:2003:i:3:p:387-413. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.