Using data from a recent survey of bank and enterprise managers and government officials in southern China, we present a new explanation for the rise and fall of collectively-owned township and village enterprises (TVEs) based on the willingness of banks to finance collective enterprise...

Decentralization can complement market liberalization by strengthening incentives of agents to respond to market signals. However, in China banks centralized lending authority following financial reforms in the mid-1990s. We present a new theory of financial decentralization in which...

Decentralization can complement market liberalization by strengthening incentives of agents to exploit local information in response to market signals. In China, however, banks centralized lending authority following financial reforms in the mid-1990s. We offer a new theory of financial...

We develop tests of financial intermediation by national banking systems that exploit regional financial and economic data. Derived from a model of bank profit maximization, the tests are based on the expectation that in efficient systems, financial intermediation should not be overly influenced...

Summary Using panel data collected in 2005, we evaluate how bank size, discretion over credit, incentive schemes, competition, and the institutional environment affect lending to small- and medium-sized enterprises in China. We deal with the endogeneity problem using instrumental variables, and...

Purpose – This paper seeks to understand the evolution of financial intermediation in the course of China's economic transition. Design/methodology/approach – The research is based on a unique data set collected by the authors and other collaborators from a 1998 survey of financial...

The purpose of this study to help shed light on the entrepreneurship, entrepreneurs and enterprise growth in Wenzhou. The study is done by relying on a probabilistic firm survey that we carried out in Wenzhou in early 2006 for three industries: shoes, eyeglasses and general equipment. Not a...

Analyzing data from a unique survey of managers of Chinese private firms, we investigate how family ties with firm heads affect managerial compensation and job assignment. We find that family managers earn higher salaries and receive more bonuses, hold higher positions, and are given more...

This paper provides new evidence on educational disruptions caused by the Cultural Revolution and identifies the returns to schooling in urban China by exploiting individual-level variation in the effects of city-wide disruptions to education. The return to college is estimated at 49.8% using a...