A Study On The Impact Of Credit Resource Allocation On Economic Growth

China's financial system is bank-oriented,commercial banks are the main body.Loan is the core business of China Commercial Bank.Thus in China,bank credit is enterprises' main financing mode.The impact of credit resources scale on economic growth is a topic worth exploring.At the same time,there are "credit discrimination" in China's credit market.It is very obvious that the credit resources is inclined to state-owned enterprises.The commercial bank lending most of their scarce money to the state-owned and large enterprises.While private enterprises and small & medium-sized enterprises,which have the innovation ability and development potential,are credit constrained seriously.In this case,the credit resources allocation between state-owned enterprises and private enterprises has a significant impact on macro-economic.Is credit resources allocation distorted? What is the effects on economic growth? Both are questions worth exploring.Base on China's current economic climate,this paper puts forward three research hypotheses.Hypothesis I: the scale of credit resources will affect the national economic development.Hypothesis II: currently,China's credit market exists "credit discrimination".Hypothesis III: credit resource misallocation will influence economic growth.We created variables which can measure the degree of credit resource misallocation,analyzed how and the impact of credit resources scale and its inappropriate allocation upon economy development.We use the panel data and GMM-SYS(Generalized-Method-of-Moments-System)to study the 2006-to-2014-annual-data at the provincial level,find the proof of these research hypotheses.The empirical results of the paper show that:(1)Credit expansion is conductive to economic growth in China.(2)China's credit market exist a certain level of "credit discrimination".(3)Credit distortion will hinder the economic development in China.(4)The state-owned enterprises' utilization efficiency of credit is very limited.In addition,we thought that the information asymmetry in the credit market,management principle of commercial bank,and government behavior will cause the inappropriate allocation of credit resources.The property rights and over investment are the reasons of low efficiency of credit resources by the state-owned enterprises.Also,this paper put forward several possible advice to raise the credit resources efficiency.