Private Firms and Informal Lending in China: Determinants for family and friends lending?
China has had an unbelievable economic development over the last 25 years. Their gross domestic product (GDP) has increased by more than 9% yearly. Since the middle of the 1980’s this trend has become more and more dependent on China’s private firms. China’s private firms are much more effective than their counterpart state-owned enterprises. Despite this fact, private firms are still treated very
