Formal Finance and Trade Credit During China's Transition

Cull, Robert ; Xu, Lixin Colin ; Zhu, Tian

World Bank, Washington, DC

关键词: ACCOUNTING;    BANK LOANS;    BANKING SYSTEM;    BANKS;    CREDIT COOPERATIVES;   

DOI  :  10.1596/1813-9450-4204
RP-ID  :  WPS4204

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Using a large panel dataset of Chineseindustrial firms, the authors examine the determinants ofaccess to loans from formal financial intermediaries andextension of trade credit. Poorly performing state-ownedenterprises were more likely to redistribute credit to firmswith less privileged access to loans through trade credit, apattern consistent with some of the extension of tradecredit being involuntary. By contrast, profitable privatedomestic firms were more likely to extend trade credit thanunprofitable ones. Trade credit likely provided a substitutefor loans for these private firms' customers that wereshut out of formal credit markets. As biases in lendingbecame less severe, the amount of trade credit extended byprivate firms declined.