Title: Property Rights Protection and Access to Bank Loans: Evidence from Private Enterprises in China
Reference Number: 1142
Publication Date: August 2005
JEL Classifcation: D23, O16, and P23

Chong-En Bai
Tsinghua University and The University of Hong Kong

Jiangyong Lu
Tsinghua University

Zhigang Tao
The University of Hong Kong


Poor protection of private properties – manifested in the risks of expropriation and discrimination – has limited the access to bank loans by private enterprises in developing and transition economies. Under those circumstances, private entrepreneurs have resorted to ingenious ways of enhancing the de facto protection of private properties through political participation and philanthropic activities. Using a data set of 3,073 private enterprises in China, this paper empirically investigates the effects of formal and de facto property rights protection on the access to bank loans.


Published in Economics of Transition 14:4 (2006), pp. 611-628.

Key words: access to bank loans, private enterprises, property rights protection

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Last modified: 01/25/2007