Analysis Of Political Association Influence Mechanism On Private Enterprise Productivity

Under the background of China’s transition period and the social structure of the relationship,the political connection of private enterprises has become a common phenomenon,and has a profound impact on the operation and development of private enterprises.For Private enterprises,the political association is a valuable resource,which has brought the credit facilities,legal protection,tax incentives,government subsidies and other scarce resources,but the political connection has a negative effect on the behavior and decision of the private enterprises,due to the political connection,the resources of the private enterprises have been reduced,which reduce the private enterprises incentive for improving their business performance and R&D innovation.Depth study of the impact mechanism of political association to private enterprise productivity,It is helpful to understand the reason why the international competitiveness of Chinese private enterprises is weak.It is of great theoretical and practical significance to promote the government to change functions,to correctly handle the relationship between government and enterprises,to promote the development of private enterp rises,and to improve the core competitiveness of the theoretical and practical significance.Based on the systematic review of the relevant literature at home and abroad,this paper mainly does the following two aspects,theoreticalanalysis: The analysis shows that,on the one hand,the political association ptomtes the improvement of the productivity of private enterprise by easing the finacing contriaints.On the one hand,Political connection,by reducing R&D innovation investment,hinders the productivity of private enterprises.Empirical aspects: Taking 2008-2014 A shares listed private enterprises in the manufacturing sector as a sample,This paper makes an empirical test on the effect and mechanism of the influence of the political association on the productivity of private enterprises.The empirical results show that the political association promotes the improvement of the productivity of private enterprises.The empirical test of mechanism found that on the one hand,The political connection has alleviated the financing constraints of private enterprises,and by easing financing constraints transmission mechanism significantly contributed to improve private enterprise productivity;on the other hand,the political connection reduces the private enterprise’s research and development innovation activity,through the research and development innovation transmission mechanism has obviously hindered the enhancement of the productivity of the private enterprise.