Has the Chinese growth model changed? A view from the credit market
A cornerstone of the Chinese growth model has been the opening up of its economy to private competition. Some observers claim that China has changed course since joining the WTO by increasingly promoting ‘state capitalism’, the large State Owned Enterprises, thereby compromising a growth model that has served it well. Due to the opaqueness of the Chinese system, even such a major shift in policy has been difficult to verify. We are able to look inside the covert policy process by studying the credit supply to Chinese listed companies, the drivers of the growth miracle, of the past decade. The econometric analysis corroborates the policy shift: we find a significant improvement in credit supply conditions of government firms relative to other firms during the latter part of the decade. The estimations also provide evidence of other major trends in credit supply that reflect the Chinese government’s policy objectives.
|Date of creation:||22 Mar 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: + 358 10 831 2268
Fax: + 358 10 831 2294
Web page: http://www.suomenpankki.fi/bofit_en/
More information through EDIRC
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.:
- Steven M. Fazzari & R. Glenn Hubbard & BRUCE C. PETERSEN, 1988.
"Financing Constraints and Corporate Investment,"
Brookings Papers on Economic Activity,
Economic Studies Program, The Brookings Institution, vol. 19(1), pages 141-206.
- Claustre Bajona & Tianshu Chu, 2010.
"Reforming State Owned Enterprises in China: Effects of WTO Accession,"
Review of Economic Dynamics,
Elsevier for the Society for Economic Dynamics, vol. 13(4), pages 800-823, October.
- Claustra Bajona & Tianshu Chu, 2009. "Data Appendix to "Reforming the State-Owned Enterprises in China: Effects of WTO Accession"," Technical Appendices 06-12, Review of Economic Dynamics.
- Claustre Bajona & Tianshu Chu, 2011. "Code and data files for "Reforming SOE in china: the role of WTO accession"," Computer Codes 06-12, Review of Economic Dynamics.
- Fungáčová, Zuzana & Herrala, Risto & Weill, Laurent, 2013.
"The influence of bank ownership on credit supply: Evidence from the recent financial crisis,"
Emerging Markets Review,
Elsevier, vol. 15(C), pages 136-147.
- Fungacova, Zuzana & Herrala, Risto & Weill, Laurent, 2011. "The Influence of Bank Ownership on Credit Supply: Evidence from the Recent Financial Crisis," BOFIT Discussion Papers 34/2011, Bank of Finland, Institute for Economies in Transition.
- Chong, Terence Tai-Leung & Lu, Liping & Ongena, Steven, 2013. "Does banking competition alleviate or worsen credit constraints faced by small- and medium-sized enterprises? Evidence from China," Journal of Banking & Finance, Elsevier, vol. 37(9), pages 3412-3424.
- Nan-Kuang Chen & Hung-Jen Wang, 2008. "Identifying the Demand and Supply Effects of Financial Crises on Bank Credit—Evidence from Taiwan," Southern Economic Journal, Southern Economic Association, vol. 75(1), pages 26-49, July.
- Herrala, Risto, 2009. "Credit crunch? An empirical test of cyclical credit policy," Research Discussion Papers 10/2009, Bank of Finland.
- Bernanke, B. & Gertler, M. & Gilchrist, S., 1998.
"The Financial Accelerator in a Quantitative Business Cycle Framework,"
98-03, C.V. Starr Center for Applied Economics, New York University.
- Bernanke, Ben S. & Gertler, Mark & Gilchrist, Simon, 1999. "The financial accelerator in a quantitative business cycle framework," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 21, pages 1341-1393 Elsevier.
- Ben Bernanke & Mark Gertler & Simon Gilchrist, 1998. "The Financial Accelerator in a Quantitative Business Cycle Framework," NBER Working Papers 6455, National Bureau of Economic Research, Inc.
- Hasan, Iftekhar & Wachtel, Paul & Zhou, Mingming, 2009.
"Institutional development, financial deepening and economic growth: Evidence from China,"
Journal of Banking & Finance,
Elsevier, vol. 33(1), pages 157-170, January.
- William Greene, 2007. "Fixed and Random Effects Models for Count Data," Working Papers 07-16, New York University, Leonard N. Stern School of Business, Department of Economics.
- Hasan, Iftekhar & Wachtel , Paul & Zhou, Mingming, 2006. "Institutional development, financial deepening and economic growth: Evidence from China," BOFIT Discussion Papers 12/2006, Bank of Finland, Institute for Economies in Transition.
When requesting a correction, please mention this item's handle: RePEc:hhs:bofitp:2012_005. 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: (Päivi Määttä)
If references are entirely missing, you can add them using this form.