Finance and cluster-based industrial development in China
The traditional literature emphasizes the causal role of finance in promoting industrial growth. China's rapid industrialization over the past several decades, which has occurred in the absence of well-functioning financial markets, seems to defy the conventional wisdom. By studying a cashmere sweat...
| Autores principales: | , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
| Publicado: |
International Food Policy Research Institute
2008
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/160423 |
| _version_ | 1855520344156143616 |
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| author | Ruan, Jianqing Zhang, Xiaobo |
| author_browse | Ruan, Jianqing Zhang, Xiaobo |
| author_facet | Ruan, Jianqing Zhang, Xiaobo |
| author_sort | Ruan, Jianqing |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | The traditional literature emphasizes the causal role of finance in promoting industrial growth. China's rapid industrialization over the past several decades, which has occurred in the absence of well-functioning financial markets, seems to defy the conventional wisdom. By studying a cashmere sweater cluster in China, this paper argues that rural industrial clustering, as a new business model, lowers the entry barriers of initial capital investment through the division of labor. Within these clusters, enterprises can often acquire trade credits from upstream or downstream firms and obtain informal financing from friends and relatives, and use these funds to mitigate constraints of working capital. These findings help explain China's rapid industrialization in the absence of an efficient financial market. |
| format | Artículo preliminar |
| id | CGSpace160423 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2008 |
| publishDateRange | 2008 |
| publishDateSort | 2008 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1604232025-11-06T05:44:19Z Finance and cluster-based industrial development in China Ruan, Jianqing Zhang, Xiaobo industrialization cluster sampling finance growth industrial development The traditional literature emphasizes the causal role of finance in promoting industrial growth. China's rapid industrialization over the past several decades, which has occurred in the absence of well-functioning financial markets, seems to defy the conventional wisdom. By studying a cashmere sweater cluster in China, this paper argues that rural industrial clustering, as a new business model, lowers the entry barriers of initial capital investment through the division of labor. Within these clusters, enterprises can often acquire trade credits from upstream or downstream firms and obtain informal financing from friends and relatives, and use these funds to mitigate constraints of working capital. These findings help explain China's rapid industrialization in the absence of an efficient financial market. 2008 2024-11-21T09:50:45Z 2024-11-21T09:50:45Z Working Paper https://hdl.handle.net/10568/160423 en Open Access application/pdf International Food Policy Research Institute Ruan, Jianqing; Zhang, Xiaobo. 2008. Finance and cluster-based industrial development in China. IFPRI Discussion Paper 768. https://hdl.handle.net/10568/160423 |
| spellingShingle | industrialization cluster sampling finance growth industrial development Ruan, Jianqing Zhang, Xiaobo Finance and cluster-based industrial development in China |
| title | Finance and cluster-based industrial development in China |
| title_full | Finance and cluster-based industrial development in China |
| title_fullStr | Finance and cluster-based industrial development in China |
| title_full_unstemmed | Finance and cluster-based industrial development in China |
| title_short | Finance and cluster-based industrial development in China |
| title_sort | finance and cluster based industrial development in china |
| topic | industrialization cluster sampling finance growth industrial development |
| url | https://hdl.handle.net/10568/160423 |
| work_keys_str_mv | AT ruanjianqing financeandclusterbasedindustrialdevelopmentinchina AT zhangxiaobo financeandclusterbasedindustrialdevelopmentinchina |