The Effect Of Interest Rate Marketization On Financing Of The Small And Medium-sized Enterprises

The small and medium-sized enterprise (SME) is an important part of economic and social development in China. However, financing predicament of SMEs has plagued the development of its development in China. In addition, SMEs in different industries and regions face the different difficulty of financing. But the propulsion of interest rate marketization in our country has achieved initial success, and it also provides a new development opportunity to SMEs financing. So it is of great significance to study the effect of interest rate marketization (MIR) on SMEs financing in different industries and regions.This paper studies the following three aspects:Firstly, putting forward the research hypotheses of the effect of interest rate marketization on SMEs financing from the perspective of different regions and industries. Secondly, applying Principal component analysis (PCA) to measuring interest rate marketization in China based on the Interbank lending MIR, bond market MIR, deposit MIR and loan MIR. Thirdly, building the dynamic unbalanced panel data model based on different regions and industries to study the effect of MIR on SMEs financing of the second industry in coastal, the second industry in inland, the third industry in coastal and the third industry in inland by using the two-stage Generalized method of moments (GMM) in statistical software by using STATA12.1.Finally, the empirical results show that the theoretical assumptions are confirmed, the concrete conclusions are followed:(1)There exists positive effect of MIR on SMEs financing of the second, the third industry in coastal and the second, the third industry in inland; (2)There exists industrial heterogeneity of the effect of MIR on SMEs financing, the effect of MIR on the SMEs financing in second industry is greater than that in the third industry; (3) There exists regional differentials of the effect of MIR on SMEs financing, the effect of MIR on the coastal SMEs financing is greater than that of inland SMEs, the reason is that the economic and financial development degree in coastal is better than that in inland. Based on the existing problems of SMEs financing, we also provide a series of policy suggestions.