The Positive Analysis About Monetary Policy Bank Lending Channel Lead To Mismatch Between The Resources Industries

Building China’s economy, the only way to realize China’s dream is to promotethe upgrading of industrial structure, and its premise is to promote the optimalallocation of resources between industries. On the basis of modified costly stateverification under the condition of financial frictions, we first analyze the theoreticalmechanism of credit resources allocation in the industry through the bank lendingchannel, and give hypothesis. Then we use difference-in-difference model to test thehypothesis. The significance of this study not only reflected in the richness of theeconomic theory of money, but also provides a new perspective for learning Chinesemonetary policy practice. In theory, the traditional monetary economics suggest thatthe role of monetary policy is limited to iron out short-term fluctuations, and is neutralfor long-term economic growth. However, in the presence of financial frictions in theeconomy, the results of this study indicate that monetary policy and exogenous shockscan have a real impact of bank credit channel to the allocation of economic resources,thus affecting the long-term economic growth. Practical significance of thisconclusion is that there are serious frictions for developing economies. And monetarypolicy toolbox, including some credit indicators such as direct administrativeintervention, non-mandatory guidance special tool window type, may be a desirablestage selection logic.Research was supported by the following main conclusions:(1) Thestrengthening of the bank lending channels has a structural misallocation effect on theupgrading of industrial structure, while tightening of monetary policy significantlyexpands the effect;(2) Properties of state-owned enterprises strengthen the creditresources misallocation effect of bank lending channel, but in consideration ofproperties of state-owned enterprises, tight monetary policy has no significantinfluence on the misallocation effect. But even so, due to the proportion ofstate-owned distribution is not balanced in different industries, therefore, on the whole,the increasing of proportion belong to the state strengthens the credit resources misallocation effect of bank lending channel Under the impact of monetary policy;(3)Although the marketization of interest rate corrects structural misallocation effect ofbank lending channel, to a certain extent, properties of state-owned enterprisesweaken the effect. Finally, we give the policy implication in the view of industrialstructure upgrade as follows:(1) The role of interest rate marketization should playaccompanying the further clarity of economic property;(2) Monetary policy has notonly pressed short-term economic fluctuation, but has the functions of adjusting thelong-term economic structure;(3) The improvement of banks’ competitive structurehelps to soften the bank lending channel, so as to promote the upgrading of industrialstructure;(4) Special financial support policy should be carried out to strategicemerging industries.