Government Venture Capital: Crowding-in or crowding-out?
Release time：03 March 2026
Mar
06
|
Time & Date
|
10:30 am
-
12:00 pm,
March
06,
2026
(Friday)
|
| TOPIC | Government Venture Capital: Crowding-in or crowding-out? |
| TIME&DATE | 10:30 am-12:00 pm, March 6, 2026 (Friday) |
| Venue | Room 804, Teaching Complex D Building |
| Speaker | Vincenzo Quadrini University of Southern California |
| Abstract | We study how government venture capital (GVC) investment affects the financial and investment decisions of funded firms using firm-level data from a large commercial bank in China. We find that GVC funding is associated with higher bank borrowing and real investment for funded firms (crowding in rather than crowding out). We do not find the same results for private venture capital (PVC) investment. Another finding is that GVC investments spill over to firms that do not receive venture capital investment but are connected to the funded firms through their supply chain network. |
| Biography | Vincenzo Quadrini is Professor of Finance and Business Economics and James McN. Stancill Chair in Business Administration at the University of Southern California. His research focuses on international economics, entrepreneurship, and financial contracts, and has been published in the American Economic Review, Journal of Political Economy, Review of Economic Studies, and other Journals. He serves as a co-editor of the American Economic Journal: Macroeconomics, has been coordinating editor of the Review of Economic Dynamics, and is a faculty research fellow at the Center for Economic Policy Research. Before joining USC, Professor Quadrini was on the faculty at New York University, Duke University, and Pompeu Fabra University. |
