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

• Tác giả: Robert Cull
• Ngôn ngữ: eng
• Ký hiệu phân loại: 915.11 Geography of and travel in Asia
• Thông tin xuất bản: World Bank, Washington, DC, 2014
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 314265
• Chủ đề: 1. ACCESS TO BANK; 2. ACCESS TO BANK LOANS; 3. ACCESS TO FINANCE; 4. ACCESS TO FORMAL FINANCE; 5. ACCOUNTANT

Tóm tắt

This paper uses data from a large survey of Chinese firms to investigate whether local government efforts to facilitate market development improve firm efficiency. Both government provision of information about products, markets, and innovation and government assistance in arranging loans are positively associated with firm efficiency. Those private firms with weak access to and knowledge of financial, input, and product markets benefit most from such assistance. These patterns are robust across multiple estimation approaches. Case studies of specific types of market facilitation by local governments are provided. The evidence is consistent with the notion that government facilitation can help some firms overcome market failures in the early stages of development. The paper argues that changing fiscal dynamics that forced local governments to become increasingly self-reliant in generating revenue and a government promotion system based on local economic performance compelled these efforts at market facilitation.