Government Credit, a Double-Edged Sword: Evidence from the China Development Bank

• 成果类型: Article
• 署名作者: Ru, Hong
• 署名单位: Nanyang Technological University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12585
• 发表日期: 2018
• 页码: 275-316
• 关键词: OWNED BANKS; finance; politicians; INFORMATION; OWNERSHIP; turnover; GROWTH

摘要

Using proprietary data from the China Development Bank (CDB), this paper examines the effects of government credit on firm activities. Tracing the effects of government credit across different levels of the supply chain, I find that CDB industrial loans to state-owned enterprises (SOEs) crowd out private firms in the same industry but crowd in private firms in downstream industries. On average, a $1 increase in CDB SOE loans leads to a $0.20 decrease in private firms' assets. Moreover, CDB infrastructure loans crowd in private firms. I use exogenous timing of municipal politicians' turnover as an instrument for CDB credit flows.