We examine the effect of large-scale administrative reorganization in China, where counties are annexed into cities to accommodate urban growth.
Local fiscal policies have been very effective in China since 2000.
Exploiting China’s WTO accession as a quasi-natural experiment, this study finds that reduced trade policy uncertainty (TPU) in a major destination market promotes domestic entrepreneurial activities in China
Using the unique institutional feature of government regulations in China, we provide robust evidence that firms with a larger employment size have significantly better access to bond credit.
The article reveals that the rise of shadow banking in China stems from the intensification of deposit competition after the global financial crisis, and analyzes the threat of small and medium-sized banks' disadvantage in this competition to the overall financial system.