Original paper
Banking on the Confucian Clan: Why China Developed Financial Markets so Late
Abstract
Over the past millennium, China has relied on the Confucian clan to achieve interpersonal cooperation, focusing on kinship and neglecting the development of impersonal institutions needed for external finance. In this paper, we test the hypothesis that the Confucian clan and financial markets are competing substitutes. Using the large cross-regional variation in the adoption of modern banks, we find that regions with historically stronger...
Paper Details
Title
Banking on the Confucian Clan: Why China Developed Financial Markets so Late
Published Date
Oct 7, 2021
Journal
Volume
132
Issue
644
Pages
1378 - 1413