Multinationals, Access to Finance and the Exports of Private Firms in China
27 Pages Posted: 4 Mar 2008
Date Written: January 2008
Using a rich panel data set, we provide a rigorous analysis of the relationship between access to external finance, foreign direct investment and the exports of private enterprises in China. We conclude that, in order to foster the exports of indigenous enterprises, the elimination of financial discrimination against private firms is likely to be a more effective policy tool than the reliance on spillovers from multinational firms.
Keywords: FDI, export, finance, endogenous Tobit model
JEL Classification: F23, G28, C24
Suggested Citation: Suggested Citation