WTO Accession, Foreign Bank Entry, and the Productivity of Chinese Manufacturing Firms

Opening up a region for foreign bank entry has no impact on aggregate productivity growth on average; * Industries more dependent on external finance grow faster after a region is opened up for foreign bank entry; * Increase in technical efficiency rather than reallocation has caused industries more dependent on external finance to grow faster after opening up a region for foreign bank entry. After China's accession to the World Trade Organization (WTO) in December 2001, foreign banks are allowed to enter the Chinese banking market in phases. Using firm-level data from the National Bureau of S... Mehr ...