TY - JOUR
T1 - The siamese twins
T2 - Do state-owned banks favor state-owned enterprises in China?
AU - Wei, Shang Jin
AU - Wang, Tao
N1 - Funding Information:
We thank James Guanzhong Wen and Chuyuan Cheng for helpful discussions. Wei acknowledgesf inancial support from Harvard University’s William Milton Fund. The authors,n ot any other individual or institution, are responsiblef or the views and errors in the paper.
PY - 1997
Y1 - 1997
N2 - Using city-level data over 1989-1991, we find relatively clear evidence that China's bank loans favor state-owned industrial enterprises. Using a simple model, we argue that the lending bias diminishes the effectiveness of other measures designed to promote the growth of non-state sectors or to induce SOEs to restructure. A policy implication of the study is that the reform of the banking sector, in particular, its lending policy should be implemented simultaneously with the reforms of state-owned industrial enterprises.
AB - Using city-level data over 1989-1991, we find relatively clear evidence that China's bank loans favor state-owned industrial enterprises. Using a simple model, we argue that the lending bias diminishes the effectiveness of other measures designed to promote the growth of non-state sectors or to induce SOEs to restructure. A policy implication of the study is that the reform of the banking sector, in particular, its lending policy should be implemented simultaneously with the reforms of state-owned industrial enterprises.
UR - http://www.scopus.com/inward/record.url?scp=0031089328&partnerID=8YFLogxK
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U2 - 10.1016/s1043-951x(97)90010-9
DO - 10.1016/s1043-951x(97)90010-9
M3 - Article
AN - SCOPUS:0031089328
SN - 1043-951X
VL - 8
SP - 19
EP - 29
JO - China Economic Review
JF - China Economic Review
IS - 1
ER -