Banking on the Confucian Clan: Why Did China Miss the Financial Revolution?

Chen, Zhiwu; Ma, Chao; Sinclair, Andrew

doi:10.2139/ssrn.3671280

Cited by 3 publications

(6 citation statements)

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“…В 2021 г. на страницах The Economic Journal вышло исследование, доказывающее, что на возникновение и проникновение новых финансовых институтов вглубь Китая оказала влияние конфуцианская клановая структура общества (Chen et al, 2020). Опираясь на данные о количестве и географическом распределении банков в Китае в начале ХХ в. и на генеалогические карты, авторы показывают, что конфуцианская клановая структура общества препятствовала проникновению в Китай новых финансовых структур.…”

Section: кланы против банковunclassified

“…Не имея этих институтов, Китай не мог обеспечить внешнее финансирование, даже когда в этом возникла необходимость в результате усилий по индустриализации страны в конце XIX в. Это объясняет тот факт, что современные финансовые институты в конце XIX в. внедрялись в Китае достаточно медленно . Новые финансы были не слишком конкурентоспособны в первую очередь потому, что «клановые» займы были дешевле, а процентная ставка внутри семьи ниже (Chen et al, 2022). В результате формальным финансовым институтам приходилось бороться с неформальными сетями страхования и финансирования, поддерживаемыми местной культурой.…”

Section: экономическая теорияunclassified

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Institutional mosaic of financial institutions in the late Qing China and synthesis of organizational forms: from piaohao and qianzhuang to the central bank

Kruglova

2023

RusJEL

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Objective: to determine the peculiarities of forming the banking system in late imperial China in terms of the interaction between traditional Chinese banking institutions, imported institutional forms, and state reform strategies. Methods: qualitative methods (comparative analysis, generalization), historical and genetic method.Results: based on a wide array of historical data, the history of the Chinese banking system development during the Qin dynasty decline is demonstrated. By the time of the Chinese economy “forced opening” by Western powers during the Opium Wars, China had its own quasi-banking institutions based on the established clan networks of trade organizations that covered the credit needs of the traditional economy. The local development of modern industries in China required modern approaches to the organization of banking activities. The lacuna was filled by foreign banks, which actually monopolized modern banking in China, and later by state-owned banks. It is shown that by the end of the Qing period all three participants of the banking industry – traditional banks, foreign banks and state banks – covered the needs of the Chinese economy. It is concluded that the banking industry of the late imperial period was a mosaic institutional fabric, combining both traditional and westernized elements and embedding clan ties traditional for China.Scientific novelty: the article is the first attempt in Russia to comprehensively examine the evolution of the banking system of late Qing China.Practical significance: the main conclusions of the article can be used in scientific and pedagogical activities in the study of economic history of traditional China, and may enrich the concepts of institutional economics concerning the limits and possibilities of institutional transformations.

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Section: кланы против банковunclassified

Section: экономическая теорияunclassified

Institutional mosaic of financial institutions in the late Qing China and synthesis of organizational forms: from piaohao and qianzhuang to the central bank

Kruglova

2023

RusJEL

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“…For instance, Greif and Tabellini (2017) firstly use genealogy books to measure the number and origins of clans in China. Chen, Ma and Sinclair (2020) use genealogy books to measure the clan culture emphasizing the influence of Confucian culture. In line with existing literature, we focus more on the contemporary implications of historical clans, since the nuclear families dominate modern China.…”

Section: Introductionmentioning

confidence: 99%

“…Our research also contributes more broadly to the literature on the understanding of the role of kin and kin-like relations in entrepreneurship, the development of the private economy and the success of market reforms in China. Existing studies mainly demonstrate how clan or kinship networks affect finance, private enterprise and market transition (Peng, 2004;Nee, 1992;Zhang, 2020;Chen, Ma and Sinclair, 2020) or qualitatively document the role of family (Whyte, 1995(Whyte, , 1996 in economic devel-opment. We add to the literature by providing quantitative evidence that historical family culture may affect economic development through its influence on industry structure and firm management.…”

Section: Introductionmentioning

confidence: 99%

“…Data from http://data.stats.gov16 The fraction of family firms will change under different definitions, but it shows a considerably high fraction of firms are family firms.17 The same as the above note.18 See https://jiapu.library.sh.cn/#/ 19 Zhong Guo Jia Pu Zong Mu, published in 2008 by Shanghai Library, which has been used in several studies by Chen, Kung and Ma (2017);Greif and Tabellini (2017);Zhang (2020);Chen, Ma and Sinclair (2020).20 See https://jpv1.library.sh.cn/jp/page/about…”

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confidence: 98%

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The Cultural Origins of Family Firms

Xie

Yuan

2021

SSRN Journal

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What determines the prevalence of family firms? In this project, we investigate the role of historical family culture in the spatial distribution of family firms.Using detailed firm-level data from China, we find that there is a larger share of family firms in regions with a stronger historical family culture, as measured by genealogy density. The results are further confirmed by an instrumental variable approach and the nearest neighbor matching method. Examining the mechanisms, we find that entrepreneurs in regions with a stronger historical family culture: i) tend to have family members engage more in firms; ii) are more likely to raise initial capital from family members; iii) are more willing to pass on the firms to their children. Historical family culture predicts better firm performance due to a lower leverage ratio.

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