What is it about?

The present paper aims to use the case of China Development Bank (CDB) to tackle the fundamental question of why development banks in an effort to shed light on the broader debate about the role of state in economic development.

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Why is it important?

China Development Bank (CDB) is the largest development bank in the world wth the total assets greater than those of the World Bank and regional devvelopment banks together. By delving deeper into the role of CDB in incubating the market for long-term urban infrastructure investments, it argues that development banks can play an indispensable role in incubating markets especially in developing and transition economies where capital markets are underdeveloped and market institutions are flawed. This perspective goes beyond the conventional approach to justifying why development banks, i.e., fixing market failures.

Perspectives

I hope this article can help to understand an understudied but important topic - the role of development banks in fostering economic structural transformation.

Jiajun Xu

Read the Original

This page is a summary of: Market Maker: The Role of China Development Bank in Incubating Market, Man and the Economy, January 2017, De Gruyter,
DOI: 10.1515/me-2017-0007.
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