The Positive Research On Institutions And Trade Credit In Chinese Region's Marketization Process

With the advance of reform and opening up and the development of market economy, commodity exchange increasingly infiltrated into our society in all areas of life. As a basic form, trade credit plays a role for the orderly functioning of social protection and sustainable development, which is the establishment of a social credit system. It is the most meaningful of studying Trade credit at this stage.The paper considers the relation of institution and enterprise trade credit. From the angle of enterprise behavior by using the theories of property rights, transaction cost, game theory and empirical approach, this paper analyses the trade credit of China's enterprises. In theory, firstly this paper analyses the conception of the trade credit, then on the basis of introducing the conception and the system info of the institutions, it explains that the institutions will guide enterprises'behavior of trade credit .Based on the inter-regional Institution differences for the background of China's market-oriented reform before 1970s, choosing the NERI index (national economy Research Institute) as a substitute variable of Institution for analysing of the relationship between the system of provincial and corporate of commercial credit .By using the multi-linearity regression method on panel data from the 1,190 enterprises of China from 2003 to 2005, this paper also documents: after controlling the internal factor variables, the institutions variable increases the explanation power of the multi-linearity equation, and what it's effect degree to obtaining trade credit is highest for enterprise in east, and what it's effect degree to offering trade credit is highest for enterprise in west.Besides continuing analyzing the deep-seated reasons of the institutions, we found that "the Government and the market's relationships", " the maturity of elements market" and "the development of market intermediary organizations and the law" are three main impact areas to enterprises obtain trade credit, and "non-state-owned economic development" and "the maturity of elements market" have a significant impact on providing trade credit.Finally, this paper actively explores on how to develop the Trade credit. According to the results of empirical testing, we find that optimizing our institutions environment of property rights, transaction information transparency, construction and implementation of the law and moral environmental construction will enhance their trade credit rating.