@article{Xiaohui_Masron_2017, title={THE EFFECTS OF DIFFERENTIATED RESERVE REQUIREMENT RATIO POLICY ON THE EARTHQUAKESTRICKEN AREA IN CHINA}, volume={17}, url={https://publisher.unimas.my/ojs/index.php/IJBS/article/view/541}, DOI={10.33736/ijbs.541.2016}, abstractNote={<p>In June, 2008, the People’s Bank of China (PBC) decided to implement Differentiated Reserve<br>Requirement Ratio (DRRR) policy in the earthquake-stricken counties in Sichuan province in order<br>to help the reconstruction of these areas which suffered the big earthquake. The purpose of this<br>study is to examine the role of this DRRR policy on the disaster area. This paper compares the<br>effects of DRRR policy on the earthquake-stricken counties with that of the normal Reserve<br>Requirement Ratio (RRR) on the other counties using panel data analysis during 2008-2011. The<br>results confirm that this preferential DRRR policy can really quicken the recovery process in the<br>earthquake-stricken counties. This DRRR policy reflects that the PBC starts to use differentiated<br>monetary policy to guide credit funds flow to the area which government policy focus on. Monetary<br>policy begins to play a role in adjusting and optimizing economic structure. Due to large regional<br>disparity, the PBC can consider expand the application of this DRRR policy to more less developed<br>regions to make a more coordinated regional economic development in China.<br>Keywords: Differentiated Reserve Requirement Ratio; Earthquake-stricken Counties; Panel Data<br>Analysis.</p&gt;}, number={3}, journal={International Journal of Business and Society}, author={Xiaohui, Guo and Masron, Tajul Ariffin}, year={2017}, month={Nov.} }