Banking Competition And R&D In Export Firms

The statistics of China's statistical yearbook show that China's total imports and exports have increased from $620 billion in 2002 to $3 trillion and 680 billion in2016.China's total trade volume has already ranked among the top in the world,but it faces the problem of low technical level of export products and mainly relies on processing trade.The trade model needs to be transformed and upgraded.Therefore,it is of great significance to thoroughly discuss the factors that affect the R&D of export enterprises in order to increase the added value of China's export products,increase the productivity of export enterprises,and create new competitive advantages,thereby realizing the transformation and upgrading of China's export trade.The increasing of R&D can effectively promote the progress of production technology.However,at this stage,there are some problems in China's financial market.Furthermore,the R&D is characterized by information asymmetry and high risk.The issues,"Financing difficulties" and "expensive financing",resulting from the two reasons,hindered the development of corporation' R&D in China to a certain extent.Particularly,the banking,in a dominant position in our financial system for a long time,plays a very important role in the corporation's R&D investment.Therefore,the deep study about the importance and the the action mechanism between the banking competition and the export company ‘s R&D has important reference value for the banking to better serve the corporation's R&D and real economy.To test the relationship and action mechanism between the banking competition and the R & D in export firms,this paper combines the information of the micro enterprise with the regional index of the banking competitiveness,using the micro-firm data in China industrial enterprises database and the financial license information of the national financial institutions from 2001-2007.The results show that,in the sample period,there is an inverted U relationship about the impact of banking competition on R&D in export firms.That is to say,a certain degree of banking competition will promote the R&D in export firms while the excessivebanking competition will curb the R&D in export firms.Compared with the central and western enterprises,the banking competition has little influence on the R & D of the eastern export enterprises.The inverted U relationship between the banking competition and the R&D of export enterprises is only significant in the non high-tech enterprises,but not in the high-tech enterprises.On the basis of the above conclusions,this paper further explore the mechanism of action.The results show that the banking competition has an impact on the R&D of export enterprises through financial constraint.The test on the sample of continuous export enterprises has also reached a consistent conclusion.Finally,according to the empirical results,this paper makes a summary and puts forward relevant policy recommendations from the perspective of banks,governments and enterprises.