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Does registration status matter for companies´ quest for loan quota in China?

Ellertsson, David LU (2013) EKHR81 20131
Department of Economic History
Abstract (Swedish)
This thesis analysis if company registration plays a significant role when obtaining credit from formal financial institutions in China. It then goes on to explore if obtained credit for the same companies results in higher total profits. The growth of the private sector in China is a unique marvel, the sector has long been discriminated against by the Chinese government and the rapid development since the opening up policy goes against most economic development theories. Using Investment Climate survey from China for the year 2004, two econometric models are presented. The study shows how registration status of companies matters in the quest for formal bank credit in China and despite the lack of formal credit private firms are returning... (More)
This thesis analysis if company registration plays a significant role when obtaining credit from formal financial institutions in China. It then goes on to explore if obtained credit for the same companies results in higher total profits. The growth of the private sector in China is a unique marvel, the sector has long been discriminated against by the Chinese government and the rapid development since the opening up policy goes against most economic development theories. Using Investment Climate survey from China for the year 2004, two econometric models are presented. The study shows how registration status of companies matters in the quest for formal bank credit in China and despite the lack of formal credit private firms are returning considerably higher total profits. The results indicate that private firms turn to alternative informal sources once in need for credit rather than trying to obtain credit from formal financial institutions in China. (Less)
Please use this url to cite or link to this publication:
author
Ellertsson, David LU
supervisor
organization
course
EKHR81 20131
year
type
H1 - Master's Degree (One Year)
subject
keywords
China, credit, registration status, private sector.
language
English
id
4015751
date added to LUP
2013-09-11 14:21:38
date last changed
2013-09-11 14:21:38
@misc{4015751,
  abstract     = {This thesis analysis if company registration plays a significant role when obtaining credit from formal financial institutions in China. It then goes on to explore if obtained credit for the same companies results in higher total profits. The growth of the private sector in China is a unique marvel, the sector has long been discriminated against by the Chinese government and the rapid development since the opening up policy goes against most economic development theories. Using Investment Climate survey from China for the year 2004, two econometric models are presented. The study shows how registration status of companies matters in the quest for formal bank credit in China and despite the lack of formal credit private firms are returning considerably higher total profits. The results indicate that private firms turn to alternative informal sources once in need for credit rather than trying to obtain credit from formal financial institutions in China.},
  author       = {Ellertsson, David},
  keyword      = {China,credit,registration status,private sector.},
  language     = {eng},
  note         = {Student Paper},
  title        = {Does registration status matter for companies´ quest for loan quota in China?},
  year         = {2013},
}