Market Facilitation by Local Government and Firm Efficiency : Evidence from China

Cull, Robert ; Xu, Lixin Colin ; Yang, Xi ; Zhou, Li-An ; Zhu, Tian

World Bank, Washington, DC

关键词: ACCESS TO BANK;    ACCESS TO BANK LOANS;    ACCESS TO FINANCE;    ACCESS TO FORMAL FINANCE;    ACCOUNTANT;   

DOI  :  10.1596/1813-9450-6688
RP-ID  :  WPS6688

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper uses data from a large surveyof Chinese firms to investigate whether local governmentefforts to facilitate market development improve firmefficiency. Both government provision of information aboutproducts, markets, and innovation and government assistancein arranging loans are positively associated with firmefficiency. Those private firms with weak access to andknowledge of financial, input, and product markets benefitmost from such assistance. These patterns are robust acrossmultiple estimation approaches. Case studies of specifictypes of market facilitation by local governments areprovided. The evidence is consistent with the notion thatgovernment facilitation can help some firms overcome marketfailures in the early stages of development. The paperargues that changing fiscal dynamics that forced localgovernments to become increasingly self-reliant ingenerating revenue and a government promotion system basedon local economic performance compelled these efforts atmarket facilitation.