The Financial System Capacities of China and India
The extraordinary performance of China and Indias economies raises questions about the traditional measures of the size and depth of financial systems. While banks and markets have played a limited role in providing funds for corporate sectors and supporting economic growth in these two countries, non-state, nonlisted firms, relying mostly on internal and alternative financing channels, have been growing faster than the state and listed sectors and contributing much of the growth. The alternative financing channels, excluded in the traditional measures of financial systems, operate outside formal institutions and are backed by non-legal mechanisms such as reputation, relationships, and trust. We define the capacity of a financial system to be the total funding available for all corporate sectors in an economy. Our findings from China and India demonstrate that alternative financing channels can significantly expand the financial system capacity and promote growth and profitability at the firm level and economy wide.
China India financial system capacity banks markets formal finance alternative finance
Franklin Allen Rajesh Chakrabarti Sankar De Jun “QJ Qian Meijun Qian
Finance Department The Wharton School University of Pennsylvania Finance Area Indian School of Business Hyderabad 500 032,India Centre for Analytical Finance Indian School of Business Hyderabad 500 032,India Finance Department Carroll School of Management Boston College Finance Department NUS Business School National University of Singapore
国际会议
大连
英文
1-40
2008-07-02（万方平台首次上网日期，不代表论文的发表时间）