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Analysis of Credit Demand and Credit Constraint for Newly Established Micro and Small Enterprises

9/1/2016 浏览量:618

Analysis of Credit Demand and Credit Constraint for Newly Established Micro and Small Enterprises

 

Zhichao Yin1, Shuang Ma2

 

(1. The School of Finance, Capital University of Economics and Business;

2.School of Economics, Survey and Research Center for China Household Finance, Southwestern University of Finance and Economics)

 

[Abstract] Micro and small enterprises have significant contribution to Chinese economic growth. Utilizing data from China household financial survey (CHFS) in 2011, this paper analyzed the credit demand in both formal and informal financial market, and credit constraint in formal financial market of newly established micro and small enterprises. Results show that newly established micro and small enterprises have stronger credit demand both in formal and informal financial market, but have higher probability of credit constraint in formal credit market. Then the newly established micro and small enterprises switch to apply for loans in informal credit market. The paper also used maximum likelihood estimator(MLE) to take the 5 selection processes in credit demand in consideration simultaneous and the main results unchanged. For policy implication, the improvement of corporate financing environment in formal financial market can reduce the whole financial risks, including formal and informal financial market.


Analysis of Credit Demand and Credit Constraint for Newly Established Micro and Small Enterprises Zhichao Yin.pdf