The Impact Of Banking Competition On Enterprise Productivity And Resource Allocation

In recent years,with the continuous deepening of banking reforms,the gradual weakening of monopoly power,whether it helps to improve the allocation of resources is worthy of attention.Under the current financial environment,it is of utmost importance to grasp the reform of the banking industry so that the banking reform can promote economic growth.This paper uses the database of Chinese industrial enterprises above designated size from 1998 to 2013 and the data of branches of financial industry from 1998 to 2015 to construct the banking competition indicators at the city level.Through the calculation of 1TP differences between companies and the decomposition of TFP growth,regional resources are measured.Efficient allocation and in-depth examination of the impact of banking competition on corporate TFP and regional resource allocation.Firstly,we use the semi-parametric estimation OP and LP methods to measure the TFP of the company.Taking into account the frequent replacement of the enterprises in the database,the OP method is used as the main regression,and the LP method is used as the comparison.Secondly,based on the calculation results of the OP method,according to the HK method and the DOP method for further processing,measure the degree of urban resource allocation.The former analyzes the efficiency of configuration by analyzing the differences in TFPs among firms in the city.The latter analyzes the growth structure of TFP and uses the change in the share of enterprises to measure the efficiency of allocation.Thirdly,match the two types of databases according to the names of prefecture-level cities,build CR5 and HHI indicators to measure the level of banking competition at the city level,and describe and analyze in depth the changes in China's banking structure from 1998 to 2015.Finally,on the basis of the calculation results of the above-mentioned research indicators,the empirical part of this paper examines in depth the impact of banking competition on the efficiency of corporate TFP and regional resource allocation and its mechanism of action.The main conclusions include:(1)After 2003,the banking industry achieved remarkable results in reforms and the level of competition increased significantly.After the financial crisis,the state strengthened financial supervision and the pace of competition has eased.(2)Banking competition has significantly improved the TFP of enterprises.This promotion is more pronounced in non-state-owned enterprises,small enterprises,and companies in the central and western regions.One of the intermediary variables is corporate financing,which means that competition optimizes corporate credit rationing.(3)Competition in the banking industry has significantly reduced the degree of misallocation of resources in the region and promoted the improvement of the efficiency of resource allocation in the region.This promotion is even more pronounced in the central and western regions.After distinguishing the input elements,the results show that competition has a significant impact on capital allocation and has no significant effect on labor allocation.(4)Through the discovery of TFP decomposition,the above conclusions are also proved,and it is found that competition attracts more highly efficient enterprises to participate and hinders the inefficient enterprises from exiting the market.This paper expands the study of the relationship between banking industry competition and market allocation,and provides empirical support for financial reform.