Creating-Government-Financing-Programs-for-Small-and-Medium-sized-Enterprises-in-China创造适合中国.pdf

50 Ch ina World Economy / 50- 65, Vol. 12, N o. 2, 2004 Creating Government Financing Programs for Small-and Medium -Sized Enterprises in China William D. B radf ord Chao Chen * Abstract The growth of small -and medium -sized enterp rises (SME s) is a key ingredientf or the sustainable economic develop ment of China. The question that this p ap er investigates is: What typ es of f inancing p rograms are the most app rop riatef or the government of China, if it wants to make more cap ital available to SMEs ? This p ap er seeks to be inf ormative in three resp ects. F irst, we introduce and utilize a theoreticalf rameworkf or determining the eff ectiveness of governmentp rograms thatp rovidef inancing to SMEs. The key variable in determining theeff ectiveness of ap rogram is how similar SMEs loans are to other investments that the lend ers can make. Second, this p ap er describes two typ es of U.S. government p rograms that have op erated to assistf inancing of small businesses, and the exp erience of thesep rograms. Third, this p ap er relates the outcomes of the U.S. p rograms to the theory p resented, and discusses the imp licationsf or thegovernment and SMEs of China. Loan characteristicp rograms that change risk of SME loans, such as loan guaranteep rograms, are concluded to be more app rop riate than loan subsidies or p orft olio restrictions, g iven that Chinese banks are relatively exp erienced at successf ully lending to SMEs. I. Introduction It is widely recognized that the growth of small -and medium -sized enterprises (