Informal Finance in China: American and Chinese Perspectives
Informal Finance in China: American and Chinese Perspectives
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Abstract
Informal finance consists of non-bank financing activities, whether conducted through family and friends, local money houses, or other types of financial associations. Informal finance has provided much-needed financing to small and medium enterprises (SMEs) in particular, in the face of a tightly constrained, overburdened formal banking system. Unable to obtain a bank loan, firms have relied upon individuals and informal organizations outside of the banking system in order to obtain financing for their ventures. Informal finance has played a critical role in China's economic boom of the last thirty years. This book describes the evolution, characteristics, and variation of informal finance in China, from American and Chinese perspectives. Literature by Jiang Shuxia, Jiang Xuzhao, and Li Jianjun has heretofore been available only in Chinese, while work by Kellee Tsai, Jianwen Liao, Harold Welsch, David Pistrui, and Sara Hsu has been available in English. For the first time, they come together to discuss informal financing and its many aspects. Much of the work stems from detailed surveys conducted locally, since this type of data is not normally collected by the government. Informal finance is a local and personal activity, but it also affects the macroeconomy; particularly in China, where it is pervasive.
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Front Matter
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1
Chapter 1 Introduction
Sara Hsu
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2
Chapter 2 The Evolution of Informal Finance in China and Its Prospects
Shuxia Jiang
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3
Chapter 3 Informal Finance, Underground Finance, Illegal Finance, and Economic Movement: A National Analysis
Jianjun Li
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4
Chapter 4 A Comparative Analysis of Regional Informal Financial Organizations in China
Xuzhao Jiang
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5
Chapter 5 Beyond Banks: The Local Logic of Informal Finance and Private Sector Development in China
Kellee S. Tsai
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6
Chapter 6 New Venture Financing: An Empirical Investigation of Chinese Entrepreneurs
Jianwen Liao and others
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7
Chapter 7 Is Informal Finance Faster, Cheaper, and Better than Formal Finance? A Study of Small and Medium Enterprises in Shanghai and Nanjing
Sara Hsu
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8
Chapter 8 Conclusion: Regulating Informal Finance in China
Jianjun Li
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End Matter
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