Law，finance and economic growth in china.doc

Law，finance and economic growth in china Journal of Financial Economics 77 (2005) 57–116 Law, ??nance, and economic growth in China$ Franklin Allena,??, Jun Qianb, Meijun Qianb aThe Wharton School, University of Pennsylvania, Finance Department, Suite 2300 SH-DH, Philadelphia, PA 19104, USA bFinance Department, Carroll School of Management, Boston College, Chestnut Hill, MA 02467, USA Received 6 January 2003; received in revised form 18 May 2004; accepted 24 June 2004 Available online 1 April 2005 Abstract ARTICLE IN PRESS .elsevier4/locate/econbase 憫2The Future of Chinese Management.’’ Financial support from Boston College and the Wharton Financial Institutions Center is gratefully acknowledged. The authors are responsible for all remaining errors. ?? 0304-405X/$ - see front matter r 2005 Elsevier B.V. All rights reserved. doi:10.1016/j.j??neco.2004.06.010 Corresponding author. Tel.: +1215 898 3629; fax: +1 215 573 2207. E-mail address: allenf@wharton.upenn.edu (F. Allen). $We appreciate detailed comments from an anonymous referee that signi??cantly improved the paper, and assistance from Qiao Yu and Wuxiang Zhu in conducting the ??rm survey. We also received helpful comments from Erik Berglo¨f, Dan Bergstresser, Loren Brandt, Dong Chen, Gregory Chow, Julan Du, Jie Gan, Li Jin, Sung Wook Joh, Simon Johnson, Ross Levine, Lijun Lin, Anthony Neoh, Tom Rawski, Yihong Xia, and seminar/session participants at the American Economic Association meetings, the Asia Corporate Governance Conference in Korea, Dartmouth, Fudan University, Harvard, HEC-Montreal, International Monetary Fund/World Bank, London School of Economics, Federal Reserve Bank of New York, Massachusetts Institute of Technology, Rice, the Riksbank, the University of Houston, University of Texas-Austin, Tsinghua International Finance Conference in Beijing, and Wharton Conference on China is an important counterexample to the ??ndings in the law, institutions, ??nance, and growth literature: Neither its legal