Financial resources and product market development: Strategic choice and institutional processes during China's transition

Journal Article (Journal Article)

During an economic transition from socialism, market exchange replaces redistribution. We study firm decisions to enter product markets to understand the factors that influence this process. Managers in Chinese State Owned Enterprises operated within institutional constraints to make strategic decisions, and state intervention shaped which factors were salient. Firms financed through central government and bond issues relied less on markets. Firms funded through local government moved into markets faster; firms funded by banks were initially faster to markets but slower to markets after bank reform shifted lending policies. Thus, the accessibility, flexibility, and stability of financing shaped decisions about market entrance.

Full Text

Duke Authors

Cited Authors

  • Keister, LA; Lu, J

Published Date

  • June 1, 2004

Published In

Volume / Issue

  • 19 / 2

Start / End Page

  • 229 - 254

International Standard Serial Number (ISSN)

  • 0884-8971

Digital Object Identifier (DOI)

  • 10.1023/B:SOFO.0000031981.07348.89

Citation Source

  • Scopus