The research for this paper has been funded by the University of Hong Kong and the Hong Kong Institute of Economics and Business Strategy. We thank Julan Du, Yingyi Qian (editor), and two anonymous referees for their very helpful comments and suggestions.
Property rights protection and access to bank loans
Evidence from private enterprises in China*
Article first published online: 28 SEP 2006
Economics of Transition
Volume 14, Issue 4, pages 611–628, October 2006
How to Cite
Bai, C.-E., Lu, J. and Tao, Z. (2006), Property rights protection and access to bank loans. Economics of Transition, 14: 611–628. doi: 10.1111/j.1468-0351.2006.00269.x
- Issue published online: 28 SEP 2006
- Article first published online: 28 SEP 2006
- Access to bank loans;
- private enterprises;
- property rights protection;
- political participation;
- philanthropic activities.
- O16 and P23
Poor protection of private property has limited the access to bank loans by private enterprises in developing and transition economies. Under those circumstances, private entrepreneurs have resorted to various ways of enhancing the de facto protection of private property. Using a dataset of 3,073 private enterprises in China, this paper empirically investigates the impact of political participation and philanthropic activities – informal substitutes for the lack of formal protection of private property – on the access to bank loans.