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Finance and Firm Export in China

Authors

  • Jun Du,

    1. Aston Business School, Aston University Birmingham, B4 7ET, United Kingdom
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    • *Contact details: Jun Du: Aston Business School, Aston University Birmingham, B4 7ET, United Kingdom. E-mail: j.du@aston.ac.uk. Sourafel Girma: Nottingham University Business School Jubilee Campus, Wollaton Road, Nottingham, NG8 1BB, United Kingdom. E-mail: sourafel.girma@nottingham.ac.uk. We gratefully acknowledge the constructive comments by Martin Hoskins. Girma benefited from an ESRC grant under its National and International Aspects of Financial Development program.

  • Sourafel Girma

    1. Nottingham University Business School Jubilee Campus, Wollaton Road, Nottingham, NG8 1BB, United Kingdom
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SUMMARY

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.

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