Financing Discrimination, Virtualization of Economy and Real Economy Distortion:An Empirical Study Based on China
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| Title | Financing Discrimination, Virtualization of Economy and Real Economy Distortion:An Empirical Study Based on China
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| Author | Luo Laijun, Jiang Cheng and Wang Yazhang |
| Organization | Economics School, Renmin University of China; Education School, Peking University;Economics School, Peking University |
| Email | laijunluo@163.com；cjiang@gse.pku.edu.cn；wyz@pku.edu.cn |
| Key Words | Market Distortion; Profit Lost; Financing Difficulty; Virtualization of Economy |
| Abstract | This paper uses industrial enterprises’ statistics database by the National Bureau of Statistics to study financing discrimination, virtualization of economy and real economy distortion, and focuses on the mechanism and mode of financing problem and virtualization of economy influencing market distortion and profit lost in the real economy. The empirical results show that bank financing has a significant positive effect on both cold and hot market distortion, and that bank financing of state-owned enterprises has caused the most severe cold market distortion but strongly suppressed hot market distortion. We discover a problem of profit lost, which is an important economic problem in China’s current situation. This paper further analyzes and discusses the influence of virtualization of economy on the real economy distortion, and initially reveals the realistic basis for the phenomenon of profit lost. The conclusions of this paper can provide some empirical evidences for the relationship between the virtual economy and the real economy, which is a very important problem triggered by the financial crisis broke out in America. |
| Serial Number | WP874 |
| Time | 2015-05-19 |
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