Date of Award
2015
Document Type
Thesis
Degree Name
Bachelors
Department
Social Sciences
First Advisor
Coe, Richard
Keywords
China, Economics, Financial Policies, Econometric Model
Area of Concentration
Economics
Abstract
In the past thirty-five years, the People’s Republic of China has engaged in extensive economic reform. Yet, reform of financial policies has lagged behind. This thesis takes stock of China’s financial policies and considers what effect they may have in terms of efficiency and equity. The theory of financial repression is used as the frame of reference. An econometric model is constructed to determine whether bank lending to state-owned and privately owned enterprises is made efficiently. Based on data and anecdotal observations, financial policies in China fit the theory of financial repression. China has inefficiently used financial resources. The econometric model yielded a negative relationship between state-owned enterprise profit and bank loans, suggesting continued bank support despite the inefficiency by stateowned enterprises. Privately owned enterprises were found to use bank loans efficiently.
Recommended Citation
Slater, Jacob Alexander, "BUT THE RIGHTEOUS GIVE GENEROUSLY: ASSESSING CHINA’S FINANCIAL POLICIES IN THE REFORM ERA" (2015). Theses & ETDs. 5115.
https://digitalcommons.ncf.edu/theses_etds/5115