How China’s Anti-Corruption Campaign Is Moving Financing Away from State-Owned Enterprises

Are anti-corruption reforms effective in reducing economic rent seeking and constraining the influence of special interests? New research from Tsinghua University PBC School of Finance finds that anti-corruption investigations in China are associated with credit reallocation from less productive state-owned enterprises (SOEs) to more productive non-SOEs. The series of investigations constitute staggered events to identify the causal impact of anti-corruption reforms on bank financing.

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