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Informal Financial Market Research

Posted on:2005-05-10Degree:DoctorType:Dissertation
Country:ChinaCandidate:J S WangFull Text:PDF
GTID:1116360125467511Subject:World economy
Abstract/Summary:PDF Full Text Request
Informal financial market has become all important component of financial systems of China.It is significant to study the micro-structrue,interest rates,efficiency of capital allocation ofinformal financial market and howto eliminate it. There are six chapters.Chapter 1 is the Introduction;Chapter 2 describes the definition,forms and existing reasons;Chapter 3 studies the micro.stnlctllre of informal financial market;Chapter 4 studies the items influencing the interest rates of informal financial market;Chapter 5 studies the efficiency of capital allocation of informal financial market;Chapter 6 studies the related policies and their effects.We reach these conclusions through the study: Firstly,there are at least three reasons for the existing of informal financial market: financial restraint and property discrimination;asymmetry information and high transaction costs;keeping secret considerations. Secondly,private information and reputation mechanism is the most important traits of informal financial market and iS also the reasons informal financial market can supply the financial support for those who are rejected by formal financial market. However,if without private information and reputation mechanism,great financial risks will come to informal financial market. Thirdly,the interest rates ofinformal financial market remains high,the credit subsidy policy may sometimes increase the interest rates of informal financial market.The bribing behavior offormal financial market may influence the interest rate ofinformal financial market. Fourthly,informal financial market Can increase the capital allocation efficiency. Roscas Can improve the welfare ofparticipants.Formal financial sector Can utilize the advantage ofinformal financial market to increase the capital allocation efficiency by design a co-finance mechanism.Informal financial market allocate the capital to those who can use it more efficiently and through which improve the wholly capital allocationefficiency. Fiflhly~foreign experience shows that financial liberalization cannot eliminate the informal financial sector automatically.Community fmancial institutions are good choices to accomplish the mission.
Keywords/Search Tags:Informal financial market, capital allocation, financial liberalization
PDF Full Text Request
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