Research About The Nonlinear Effects Of FDI On Credit Discrimination In China

Since China's accession to the WTO,China has experienced a large-scale inflow of FDI,FDI has a significant effect on domestic industrial upgrading and technological product innovation.At the same time,many scholars have begun to study the impact of FDI on corporate credit financing.As we all know,private enterprises with strong financing needs in our country can not enjoy the corresponding credit resources and suffer the credit discrimination based on the nature of ownership.At the same time,more and more foreign companies are trying to share a slice of the local credit market,making it more difficult for private companies to lend.This paper aims to study whether FDI will affect credit discrimination and clarify the relationship between the two through theoretical and empirical analysis,which has important theoretical and practical significance to improve credit discrimination and local government investment policy.First of all,this paper combs the relevant domestic and foreign literature,divides the literature into two kinds of viewpoints.On this basis,it expounds the innovation of this paper,and defines the concept of FDI and credit discrimination.And then theoretically analyzes the macro-micro mechanism of FDI's impact on credit discrimination,in which the positive and negative effects show that there may be a non-linear relationship between the two.Secondly,through a large number of data charts on the status of FDI and credit discrimination in the horizontal and vertical descriptive statistics and analysis,to further verify the non-linear relationship between the two.Thirdly,the paper chooses the appropriate indicators to measure the credit discrimination,and builds the Panel Smooth Transition Regression models(PSTR)based on the 30 provinces and cities in China from 2000 to 2015,and makes an empirical study on how China's FDI affects credit discrimination.The empirical results show that the impact of FDI on credit discrimination in China is indeed non-linear relationship.The effect of FDI on credit discrimination is weakened with the increase of regional FDI.When FDI radio is more than 1.43%,FDI will aggravate credit discrimination,Consistent with the theoretical reality.At the same time,the improvement effect of financial scale on credit discrimination is becoming more and more important,and the improvement of trade openness is gradually becoming smaller.Government expenditure has also played a positive role in the improvement of credit discrimination.Finally,according to the theoretical and empirical analysis results,this paper puts forward some countermeasures to adjust the local government's policy of attracting foreign capital,promote the structural reform of the local credit market,improve the credit guarantee system of small and medium-sized enterprises,establish the open and transparent credit system and speed up the improvement of multi-level capital market.