The Impact Of Foreign Investment On Corporate Financing Constraints

Since the reform and opening up,China’s market-oriented reform has achieved phased results.After China joined the WTO(World Trade Organization)in 2001,the restrictions on foreign investment access have been gradually relaxed,and the process of trade opening has been further accelerated.At this stage,China’s economy is in a critical period of transformation,upgrading and structural adjustment.However,the problems of "financing difficulties and high financing costs" commonly faced by Chinese enterprises have become a key issue in the process of building an effective system and mechanism for the financial market,upgrading enterprises’ industries,and upgrading the global value chain.Urgent problem to be solved.The research conclusions of this thesis can provide specific reference for the country to improve the financing conditions of enterprises and reduce the operating pressure,which has certain practical significance.This thesis constructs a double-difference model of foreign investment policy impact,based on the 1998-2007 China Industrial Enterprise Database,EPS Database,"Foreign Investment Industry Guidance Catalogue(Revised in 2002)",etc.After describing the relevant characteristics and facts of the level of constraints and the utilization of foreign capital,we try to summarize the impact of foreign investment on the financing constraints of Chinese manufacturing enterprises and the channels of influence,and conduct a series of validity and robustness tests to prove the robustness of the conclusions.After further heterogeneity expansion analysis,research conclusions and corresponding policy recommendations are finally drawn.The research results show that:(1)the entry of foreign capital can alleviate the financing constraints faced by Chinese manufacturing enterprises;(2)the entry of foreign capital can further alleviate the financing constraints faced by manufacturing enterprises through financial market channels and human capital channels.Including the improvement of the degree of development of the financial market and the expansion of the scale of development;the channel of human capital is mainly reflected by the increase of scientific research funding;(3)the alleviation of foreign investment in the financing constraints of enterprises will vary with the production efficiency,technological content,capital of enterprises Differences in labor ratio,ownership,geographic location and size.In general,the entry of foreign capital has a more obvious role in alleviating the financing constraints of enterprises with low production efficiency,low-tech enterprises,and high-capital labor ratio enterprises,state-owned enterprises,enterprises in coastal areas and large enterprises.Finally,in order to better promote the improvement of China’s financial market,the use of "government and enterprise funds" for foreign direct investment,and the further ease of financing constraints of manufacturing enterprises,this thesis combines China’s actual national conditions and current situation and empirical results to improve the efficiency of foreign investment absorption,optimizing the financing environment of disadvantaged enterprises,strengthening financial market management and stimulating enterprises’ scientific research and innovation activities,and put forward targeted suggestions.The innovation of this thesis is that most of the existing literature analyzes the impact of corporate financing constraints on foreign direct investment,or the relationship between financing constraints and foreign direct investment and exports.Few studies directly focus on the constraints of foreign investment on corporate financing influence.At the same time,on the basis of other related researches using ordinary OLS regression,this thesis adopts the more advanced double difference and triple difference methods in the empirical research part.