The impact of credit control and interest rate regulation on the transforming Chinese economy: an analysis of long-run effects.

After identifying the two major institutional features of the Chinese economy, i.e., the coexistence of state-owned enterprises and private firms and tight governmental control over the financial sector, we incorporate these features into an endogenous growth model to investigate the long-run impact...

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Publicado en:Journal of Comparative Economics Vol. 28; no. 2; pp. 293 - 321
Autores principales: Fung, Michael Ka-Yiu, Ho, Wai-Ming, Zhu, Lijing
Formato: Artículo
Publicado: Academic Press Inc. June 2000
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: June 2000
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      pub: Academic Press Inc.
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        10.1006/jcec.2000.1655
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        atl: The impact of credit control and interest rate regulation on the transforming Chinese economy: an analysis of long-run effects.
      aug:
        au:
          Fung, Michael Ka-Yiu
          Ho, Wai-Ming
          Zhu, Lijing
      su:
        Resource allocation -- Mathematical models
        Production functions (Economic theory)
        Credit control
        Mathematical models
        Monetary policy
        Government securities
        Rate of return
        Overlapping generations model (Economics)
        Savings
        Mixed economy
        China
      sug:
        subj:
          China
          Resource allocation -- Mathematical models
          Production functions (Economic theory)
          Credit control
          Mathematical models
          Monetary policy
          Government securities
          Rate of return
          Overlapping generations model (Economics)
          Savings
          Mixed economy
      ab: After identifying the two major institutional features of the Chinese economy, i.e., the coexistence of state-owned enterprises and private firms and tight governmental control over the financial sector, we incorporate these features into an endogenous growth model to investigate the long-run impacts of credit control and interest rate policies on the macroeconomic performance of the transforming Chinese economy. We find that (i) raising the interest rate on government bonds reduces the inflation rate without tempering the output growth rate, (ii) reducing the bank loans available to the state-owned enterprises may lower both the inflation rate and the output growth rate, (iii) increasing the nominal interest rate on bank deposits will exert a stagflationary effect on the economy, i.e., increasing the inflation rate but reducing the output growth rate, and (iv) changing the nominal interest rate on bank loans will have little real effect.J. Comp. Econom., June 2000, 28(2), pp. 293–320. Department of Decision Sciences & Managerial Economics, The Chinese University of Hong Kong, Shatin, N.T., Hong Kong; York University, Toronto, Ontario, Canada M3J 1P3; and National University of Singapore, Singapore. Copyright 2000 Academic Press.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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