TY  - RPRT
        AU  - Guariglia, Alessandra
AU  - Liu, Xiaoxuan
AU  - Song, Lina
        TI  - Internal Finance and Growth: Microeconometric Evidence on Chinese Firms
        PY  - 2008/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 3808
        UR  - https://www.iza.org/index.php/publications/dp3808
        AB  - Does the availability of internal finance constrain firm growth? Or does it foster it? To answer these questions, we use a panel of 407,096 Chinese firms over the period 2000−2005. We estimate dynamic assets growth equations augmented with cash flow, and find that the growth of state owned enterprises is not affected by cash flow, while that of privately owned firms is most affected. Considering that they represent 62% of the observations in our sample and that, in spite of being typically discriminated against by financial institutions, private firms have experienced sensational growth rates, our results suggest that internal finance has fostered rather than constrained their growth.
        KW  - cash flow
KW  - financial constraints
KW  - assets growth
        ER  -