Marketization of Banking System, Allocation of Credit and Industry Restructuring
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| Title | Marketization of Banking System, Allocation of Credit and Industry Restructuring
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| Author | Jian Ze, Gan Chunhui and Yu Dianfan |
| Organization | Tongji University; Shanghai University of Finance and Economics |
| Email | jianze@tongji.edu.cn；ganchh@126.com；ydfshufe@126.com |
| Key Words | Change of Banking System; Allocation of Credit; Industrial Restructuring |
| Abstract | Utilizing a natural experiment, this paper investigates how the reform of the banking system affected the restructuring. At the firm level, we find that market-based allocation of credit promoted the adjustment of firm's scale, the lowering of cost , innovation and the improvement of performance. At the industry level, we observe that market-oriented reform of the banking system stimulated large scale entry-exit and reallocation of resource across firms. These findings suggest that the marketization of the allocation of credit induces the restructuring of firms and industries. Thus, further deregulation of entry of banking systems as well as promoting market-based allocation of credit will push forward the restructuring of the real economy and improvement of the real economy |
| Serial Number | WP291 |
| Time | 2012-07-13 |
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