Agglomeration,Financing Constraints And Enterprise Growth

For the current transition in China,the capital market is not perfect and can not be effectively improved in the short term,Therefore,for a long time,those enterprises dependent on external financing to develop,especially SMEs have been facing dilemma of "financial difficulties".The shortage of the capital that means "fuel shortage" often become running paralysis and even premature mortality culprit.Recently,however,many phenomena exhibit that the enterprises in industrial agglomeration areas can easily access to financing compared with free enterprise,and help enterprises grow in the absence of financial system.Therefore,the writer explores industrial agglomeration by easing financing constraints to affect business growth mechanism from this new perspective of financial externalities industrial agglomeration.With its natural mechanisms for information exchange and moral restraint mechanism,agglomeration can ease the problem of low transparency of information in enterprises,low credit,high costs of transaction regulatory in the process of financing,improve the efficiency of enterprises and promote growth of enterprises.Based on that,the writer expand the empirical analysis of the mechanism,with the database of 1998-2007 Chinese industrial enterprises and the great sample data of business investment environment by World Bank data in 2005.First,building a mediation effect model,the paper tests empirically its mediating effect as industrial agglomeration affect growth.Basic test results show that:industrial agglomeration information sharing mechanisms can significantly relieve financing sensitivity and financing costs that enterprises are facing,thus it can promote business growth.Secondly,in order to prevent the existence of reverse causality may affect the accuracy of the estimation results between industrial agglomeration and financing constraints,the writer select the value of the lagged and lagged two variables of industrial agglomeration to re-inspect.The result of Logit model is relatively robust.Meanwhile,the writer finds the ease of financial constraints produces non-equilibrium effects on enterprises of different sizes.Specifically,the agglomeration to large enterprises financing did not have a significant promotion on mitigation,but the promotion on SMEs is very significant.Finally,the writer focused on the mechanism about the financial externality of industrial agglomeration to the business growth.The bank mortgage loans and commercial credit is considered as an important channel to ease financial constraints.The analysis of the mediating effects model and nested model of Heckman shows that:Although agglomeration can significantly reduce the proportion of mortgage loans of the gathering business,increase the proportion of accounts payable,it is not significant to the eventual growth of enterprise.On this basis,the writer put forward relevant policy recommendations and pointed out the existing problems and the direction of future research.