A. Guariglia
Internal Finance and Growth: Microeconometric Evidence on Chinese Firms
Guariglia, A.; Liu, X; Song, L.
Authors
X Liu
L. Song
Abstract
Using a panel of 79,841 Chinese firms over the period 2000–2007, we examine the extent to which liquidity constraints affect firms' assets growth. We find that state owned enterprises are not affected, while the availability of internal finance represents a binding constraint for the growth of private firms, especially those operating in coastal regions, with negligible foreign ownership. Thanks to their high productivity, cash flow is, however, so abundant for these firms that they are able to grow at a very fast rate, despite being discriminated against by financial institutions. Hence, well developed external capital markets may not always be needed for fast economic growth.
Citation
Guariglia, A., Liu, X., & Song, L. (2011). Internal Finance and Growth: Microeconometric Evidence on Chinese Firms. Journal of Development Economics, 96(1), 79-94. https://doi.org/10.1016/j.jdeveco.2010.07.003
Journal Article Type | Article |
---|---|
Publication Date | Sep 1, 2011 |
Deposit Date | Jul 21, 2011 |
Journal | Journal of Development Economics |
Print ISSN | 0304-3878 |
Publisher | Elsevier |
Peer Reviewed | Peer Reviewed |
Volume | 96 |
Issue | 1 |
Pages | 79-94 |
DOI | https://doi.org/10.1016/j.jdeveco.2010.07.003 |
Keywords | Assets growth, Cash flow, Financial constraints. |
Public URL | https://durham-repository.worktribe.com/output/1538491 |
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