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This book investigates and resolves some financial and monetary questions regarding Chinese economy. The first chapter examines the role of informal financing in China using a firm-level dataset of manufacture industry, and finds that low-risk informal finance exerts a positive effect on firms´ performance. The second and third chapter focus on the measurement and effect of Chinese monetary policy. The autor establishes a new index by using a state space method, reflecting changes in various monetary instruments, which has both theoretical and empirical advantages. Then he investigates the effect of China´s monetary policy shocks on its close trading partners in developing Asia with the GVAR method. China´s influence has highly expanded even by monetary policy perspective.

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Introduction

1. Financial Sources and Economic Growth: Firm-Level Evidence from Chinese Manufacturing Industry

Introduction - Firms´ Financing Sources - Data Description and Summary Statistics - Informal Financing and Firm Performance - Empirical Results - Conclusion

2. An Evaluation of Different Measures of the Chinese Monetary Policy Stance

Introduction - Literature Review - Different Measurements of Chinese Monetary Policy Stance - Data - The Responsiveness of Monetary Policies - Estimated Response to Monetary Policy Shock - Conclusion - Appendix

3. China´s Monetary Policy and its Impact on Developing Asia: A GVAR Approach

Introduction - China´s Monetary Policy - China and Asia Countries - Method - Data and VARX Setups - Impulse Response Analysis - Conclusion

References

Subject Index

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Jiajin Huang got his PhD in Goethe University in Frankfurt, Germany, and is now working for a Chinese official think-tank in Shanghai. His main research interests focus on monetary and financial issues regarding China s Economy.

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