论文题目:Credit Allocation under Economic Stimulus: Evidence from China

主 讲 人:金钊(岭南学院 博士生)

时      间:2017年5月8日(周一)7:30 PM

地      点:岭南堂林植宣会议室

 

摘要:

We study credit allocation across firms in a dynamic economy with financial frictions. In normal times, growth is driven by gradual reallocation of resources from low to high productivity firms. Recessions can slow down or even reverse this process of reallocation due to financial frictions – such as implicit government bailout – favoring low-productivity state-controlled firms. Credit expansion further amplifies this effect. We investigate this mechanism in the context of China’s economic stimulus plan introduced in response to the Great Recession, which triggered a large policy-driven credit expansion. Using private firm-level data we document the dynamics of credit allocation and show evidence consistent with reallocation reversal: differently from the pre-stimulus years, new credit under economic stimulus was allocated relatively more towards state-owned, low-productivity firms than to privately-owned, high-productivity firms.