Business, Management and Accounting
8 years ago

Soft budget constraints hindering growth of Chinese private enterprises, study finds.

Jingji wenti
Analysis on the Growth of Chinese Private Enterprises Based on Soft Budget Constraint
Tang Ji-junb

Paper Summary

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Firm Dynamics

Private enterprises in China are growing rapidly, but they face a problem called soft budget constraint. This means they sometimes don't have to stick to their budgets, which can be good or bad for their growth. To help private enterprises grow better, we need to make sure they have some rules to follow about their budgets. This will help them transition smoothly and improve in the future.