Research Article


DOI :10.26650/SJ.2020.40.2.0060   IUP :10.26650/SJ.2020.40.2.0060    Full Text (PDF)

Development Finance: A Financing Platform Between the Government and the Market

Liu WeipingLiu Daren

The core of development finance with Chinese characteristics is that it is a “bridge” between the government and the market. Development finance addresses the phenomenon of “market failure” due to information asymmetry and alleviates the problem of “government failure” due to the inefficiency of fiscal subsidies and other funds through government intervention in financial markets. Meanwhile, it integrates the advantages of commercial finance and traditional policy-based finance. It is a form of finance that was introduced in response to institutional backwardness and market failure and in order to safeguard national financial security and enhance economic competitiveness. The core mechanism of development finance is to build a government credit system through cooperation between policy banks and governments and by relying on government-organized credit enhancement, and to form a financing mechanism consisting of “project selection by the government, development finance incubation, and the realization of market outlets”. Development finance combines project construction with market building, makes initiative on the part of the government the focus of the market-oriented operation of development banks, utilizes national credit, and regulates market failure and promotes balanced economic development through reasonable arrangements for credit volumes and structures. 


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APA

Weiping, L., & Daren, L. (2020). Development Finance: A Financing Platform Between the Government and the Market. İstanbul University Journal of Sociology, 40(2), 677-699. https://doi.org/10.26650/SJ.2020.40.2.0060


AMA

Weiping L, Daren L. Development Finance: A Financing Platform Between the Government and the Market. İstanbul University Journal of Sociology. 2020;40(2):677-699. https://doi.org/10.26650/SJ.2020.40.2.0060


ABNT

Weiping, L.; Daren, L. Development Finance: A Financing Platform Between the Government and the Market. İstanbul University Journal of Sociology, [Publisher Location], v. 40, n. 2, p. 677-699, 2020.


Chicago: Author-Date Style

Weiping, Liu, and Liu Daren. 2020. “Development Finance: A Financing Platform Between the Government and the Market.” İstanbul University Journal of Sociology 40, no. 2: 677-699. https://doi.org/10.26650/SJ.2020.40.2.0060


Chicago: Humanities Style

Weiping, Liu, and Liu Daren. Development Finance: A Financing Platform Between the Government and the Market.” İstanbul University Journal of Sociology 40, no. 2 (Sep. 2021): 677-699. https://doi.org/10.26650/SJ.2020.40.2.0060


Harvard: Australian Style

Weiping, L & Daren, L 2020, 'Development Finance: A Financing Platform Between the Government and the Market', İstanbul University Journal of Sociology, vol. 40, no. 2, pp. 677-699, viewed 24 Sep. 2021, https://doi.org/10.26650/SJ.2020.40.2.0060


Harvard: Author-Date Style

Weiping, L. and Daren, L. (2020) ‘Development Finance: A Financing Platform Between the Government and the Market’, İstanbul University Journal of Sociology, 40(2), pp. 677-699. https://doi.org/10.26650/SJ.2020.40.2.0060 (24 Sep. 2021).


MLA

Weiping, Liu, and Liu Daren. Development Finance: A Financing Platform Between the Government and the Market.” İstanbul University Journal of Sociology, vol. 40, no. 2, 2020, pp. 677-699. [Database Container], https://doi.org/10.26650/SJ.2020.40.2.0060


Vancouver

Weiping L, Daren L. Development Finance: A Financing Platform Between the Government and the Market. İstanbul University Journal of Sociology [Internet]. 24 Sep. 2021 [cited 24 Sep. 2021];40(2):677-699. Available from: https://doi.org/10.26650/SJ.2020.40.2.0060 doi: 10.26650/SJ.2020.40.2.0060


ISNAD

Weiping, Liu - Daren, Liu. Development Finance: A Financing Platform Between the Government and the Market”. İstanbul University Journal of Sociology 40/2 (Sep. 2021): 677-699. https://doi.org/10.26650/SJ.2020.40.2.0060



TIMELINE


Submitted20.05.2020
Accepted05.11.2020
Published Online31.12.2020

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