The Banking Reform in China - Is the Chinese Bank Loan Market Liberal?
(2006)Department of Economics
- Abstract
- China is growing to become the largest economy in the world, yet, the Middle Kingdom has a number of problems. New and productive non-state owned firms -the engine of growth- face a problem when searching for inexpensive external funding. That is, non state-owned firms have a hard time applying for commercial bank loans. The government is implementing liberating reforms. But the reforms are limited by a heavy state-ownership of the financial sector. This thesis considers a banking reform that should be as free and market oriented as possible, and tests if it can be statistically proven whether political relations are significant when a firm applies for a commercial bank loan. The result show that the reforms still has a relatively long way... (More)
- China is growing to become the largest economy in the world, yet, the Middle Kingdom has a number of problems. New and productive non-state owned firms -the engine of growth- face a problem when searching for inexpensive external funding. That is, non state-owned firms have a hard time applying for commercial bank loans. The government is implementing liberating reforms. But the reforms are limited by a heavy state-ownership of the financial sector. This thesis considers a banking reform that should be as free and market oriented as possible, and tests if it can be statistically proven whether political relations are significant when a firm applies for a commercial bank loan. The result show that the reforms still has a relatively long way to go. Thus, the Chinese government must sharpen up its efforts to implement the reforms and modernize the Chinese commercial bank system. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1335008
- author
- Karlsson, Per
- supervisor
- organization
- year
- 2006
- type
- M2 - Bachelor Degree
- subject
- keywords
- China, Government intervention, bank loan, financial reform, Economics, econometrics, economic theory, economic systems, economic policy, Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik
- language
- English
- id
- 1335008
- date added to LUP
- 2006-06-06 00:00:00
- date last changed
- 2010-08-03 10:49:16
@misc{1335008,
abstract = {{China is growing to become the largest economy in the world, yet, the Middle Kingdom has a number of problems. New and productive non-state owned firms -the engine of growth- face a problem when searching for inexpensive external funding. That is, non state-owned firms have a hard time applying for commercial bank loans. The government is implementing liberating reforms. But the reforms are limited by a heavy state-ownership of the financial sector. This thesis considers a banking reform that should be as free and market oriented as possible, and tests if it can be statistically proven whether political relations are significant when a firm applies for a commercial bank loan. The result show that the reforms still has a relatively long way to go. Thus, the Chinese government must sharpen up its efforts to implement the reforms and modernize the Chinese commercial bank system.}},
author = {{Karlsson, Per}},
language = {{eng}},
note = {{Student Paper}},
title = {{The Banking Reform in China - Is the Chinese Bank Loan Market Liberal?}},
year = {{2006}},
}