Home > Publications . Search All . Browse All . Country . Browse PSC Pubs . PSC Report Series

PSC In The News

RSS Feed icon

Former trainee Herbert says residential squatters may be a good thing

Work by Couper, Farley et al. shows impact of racial composition on neighborhood choice

Thompson details killings and shaping of official narrative in 1971 Attica prison uprising

More News

Highlights

Michigan ranked #12 on Business Insider's list of 50 best American colleges

Frey's new report explores how the changing US electorate could shape the next 5 presidential elections, 2016 to 2032

U-M's Data Science Initiative offers expanded consulting services via CSCAR

Elizabeth Bruch promoted to Associate Professor

Next Brown Bag

PSC Brown Bags
will resume fall 2016

Joint Liability Lending and the Rise and Fall of China's Township and Village Enterprises

Publication Abstract

Park, Albert F., and M.G. Shen. 2003. "Joint Liability Lending and the Rise and Fall of China's Township and Village Enterprises." Journal of Development Economics, 71(2): 497-531.

We present a new explanation for the rise and fall of collectively owned enterprises based on the changing lending preferences of banks. Until the mid-1990s, bank loans to collective firms exhibited the key features of joint liability lending, supported by the sanctioning ability of local government leaders. However, subsequent changes in collateral, firm performance, interest rates and financial competition led banks to prefer individual lending to private firms. This explanation is supported by empirical analysis of the determinants of bank lending preferences, the involvement of township leaders in lending and the ability of firms to obtain loans. (C) 2003 Elsevier Science B.V. All rights reserved.

Browse | Search : All Pubs | Next