Source of finance, growth and firm size:evidence from China

Du, Jun and Girma, Sourafel (2009). Source of finance, growth and firm size:evidence from China. Working Paper. UNU-WIDER.


Using a comprehensive firm-level dataset spanning the period 1998-2005, this paper provides a thorough investigation of the relationship between firm size, total factor productivity growth and financial structure in China, controlling for the endogeneity of the latter. Generally, it finds financing source matters for firms of different size, and the extent to which financing source matters for firm growth is greater for small firms than big firms. Self-raised finance appears to be most effective in promoting small firms to grow, and bank loan seems to be more supportive to big firms. The relationship between size, finance and growth also depends on ownership. In addition, there exist strong complementarities between formal and informal finance, as well as between indigenous and foreign finance.

Divisions: Aston Business School > Economics, Finance & Entrepreneurship
Aston Business School
Uncontrolled Keywords: China,finance,firm size,growth
Full Text Link: http://www.wide ... n_GB/rp2009-03/
Related URLs:
Published Date: 2009-01
Authors: Du, Jun
Girma, Sourafel

Export / Share Citation


Additional statistics for this record