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Article: Bank loans vs. Trade credit;Evidence from China
Title | Bank loans vs. Trade credit;Evidence from China |
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Authors | |
Keywords | Bank Loans Firm Growth Firm Performance Trade Credit |
Issue Date | 2012 |
Publisher | Blackwell Publishing Ltd. The Journal's web site is located at http://www.blackwellpublishing.com/journals/ECOT |
Citation | Economics Of Transition, 2012, v. 20 n. 3, p. 457-480 How to Cite? |
Abstract | Using a World Bank dataset of Chinese firms, we investigate the relative importance of bank loans and trade credit in promoting firm performance. To deal with possible endogeneity issues, we employ distinct and separable instrumental variables for bank loans and trade credit. We find that access to bank loans is central to improving firm performance and growth, while the availability of trade credit is much less important. Our results suggest that trade credit cannot effectively substitute for bank loans. Overall, our findings suggest the need for further development of China's formal financial institutions, which would enable the non-state sector to grow much faster than it has grown in recent decades. © 2012 The Authors. |
Persistent Identifier | http://hdl.handle.net/10722/178090 |
ISSN | 2021 Impact Factor: 0.951 2020 SCImago Journal Rankings: 0.351 |
ISI Accession Number ID | |
References |
DC Field | Value | Language |
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dc.contributor.author | Du, J | en_US |
dc.contributor.author | Lu, Y | en_US |
dc.contributor.author | Tao, Z | en_US |
dc.date.accessioned | 2012-12-19T09:41:52Z | - |
dc.date.available | 2012-12-19T09:41:52Z | - |
dc.date.issued | 2012 | en_US |
dc.identifier.citation | Economics Of Transition, 2012, v. 20 n. 3, p. 457-480 | en_US |
dc.identifier.issn | 0967-0750 | en_US |
dc.identifier.uri | http://hdl.handle.net/10722/178090 | - |
dc.description.abstract | Using a World Bank dataset of Chinese firms, we investigate the relative importance of bank loans and trade credit in promoting firm performance. To deal with possible endogeneity issues, we employ distinct and separable instrumental variables for bank loans and trade credit. We find that access to bank loans is central to improving firm performance and growth, while the availability of trade credit is much less important. Our results suggest that trade credit cannot effectively substitute for bank loans. Overall, our findings suggest the need for further development of China's formal financial institutions, which would enable the non-state sector to grow much faster than it has grown in recent decades. © 2012 The Authors. | en_US |
dc.language | eng | en_US |
dc.publisher | Blackwell Publishing Ltd. The Journal's web site is located at http://www.blackwellpublishing.com/journals/ECOT | en_US |
dc.relation.ispartof | Economics of Transition | en_US |
dc.rights | This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License. | - |
dc.subject | Bank Loans | en_US |
dc.subject | Firm Growth | en_US |
dc.subject | Firm Performance | en_US |
dc.subject | Trade Credit | en_US |
dc.title | Bank loans vs. Trade credit;Evidence from China | en_US |
dc.type | Article | en_US |
dc.identifier.email | Lu, Y: xzhongkanson@business.hku.hk | en_US |
dc.identifier.email | Tao, Z: ztao@hku.hk | en_US |
dc.identifier.authority | Lu, Y=rp01081 | en_US |
dc.identifier.authority | Tao, Z=rp01097 | en_US |
dc.description.nature | preprint | en_US |
dc.identifier.doi | 10.1111/j.1468-0351.2012.00439.x | en_US |
dc.identifier.scopus | eid_2-s2.0-84868583016 | en_US |
dc.identifier.hkuros | 207807 | - |
dc.relation.references | http://www.scopus.com/mlt/select.url?eid=2-s2.0-84868583016&selection=ref&src=s&origin=recordpage | en_US |
dc.identifier.volume | 20 | en_US |
dc.identifier.issue | 3 | en_US |
dc.identifier.spage | 457 | en_US |
dc.identifier.epage | 480 | en_US |
dc.identifier.isi | WOS:000304818200003 | - |
dc.publisher.place | United Kingdom | en_US |
dc.identifier.scopusauthorid | Du, J=8850784100 | en_US |
dc.identifier.scopusauthorid | Lu, Y=54901610300 | en_US |
dc.identifier.scopusauthorid | Tao, Z=7201884505 | en_US |
dc.identifier.issnl | 0967-0750 | - |