The Effect Of Bank Credit On Regional Capital Allocation Efficiency

The real economy is the foundation of China's economic and social development.The efficiency of capital allocation in the real economy determines the overall quality of China's economy.It is also related to the smooth transformation of the mode of economic development and the smooth completion of the modem economic system.However,with the rapid economic development,the mode of economic development is shifting from the extensive growth mode of pursuing speed to the intensive growth mode of pursuing quality and efficiency.It is the inevitable demand of China's high quality development to carry out supply-side structural reform,adjust capital stock and improve the capital allocation efficiency of real economy.This paper draws on the model proposed by Jeffery Wurgler(2000).Using the panel data of 31 provinces,municipalities and autonomous regions from 1999 to 2016 as a sample,this paper builds a panel data model to measure and evaluate the efficiency of China's real economy capital allocation,The horizontal and vertical comparative analysis of the efficiency of capital allocation between regions and different periods,and the mechanism of measuring the effect of the efficiency of capital allocation in real economy.First of all,we measure the overall capital allocation efficiency in our country from a static situation.The result shows that the overall level of the efficiency of capital allocation in real economy in our country is 0.6047,revealing the basic features that the efficiency of capital allocation in real economy is at a low level:Then,we measure the annual capital allocation efficiency of our country from 1999 to 2016 under dynamic conditions.The results show that the volatility of the annual capital allocation is intense,which is mainly related to the national conditions,the level of economic development and the implementation of macroeconomic policies in China.Finally,the paper investigates the efficiency of capital allocation between the three regions and each province,and measures the efficiency of capital allocation in all regions in China by using individual variable coefficient model.It finds that the efficiency of capital allocation in the eastern region is high,but the capital allocation efficiency in the western region is low,As a result,the efficiency of capital allocation in the eastern provinces is higher than that in the western provinces,which proves to some extent that there is a positive correlation between economic development and the efficiency of capital allocationIn order to deeply analyze the influencing factors of bank credit on the efficiency of capital allocation in real economy of our country.From the overall sample,this paper estimates that China's bank credit does not improve the efficiency of capital allocation of real economy,From the perspective of space,there are great differences in economic development,institutional environment,cultural traditions and resource endowments in various regions of China;From the perspective of time dimension,the sample span is longer,and the economic development and economic policies of our country have changed greatly in this time.Therefore,this paper analyzes the relationship between bank credit and real economy capital allocation efficiency in different sub-samples from region and time respectively.From a regional perspective,bank credit in the eastern region is not conducive to the development of the real economy,while bank credit in the western region can improve the efficiency of capital allocation in the real economy.It can be seen from the period that bank credit in 1999-2007 can improve the efficiency of capital allocation of real economy,which is exactly the same as the theoretical expectation.The empirical results of 2008-2016 show that bank credit should improve the efficiency of capital allocation of real economy.However,in reality,bank credit has worsened the development of real economy capital allocation efficiency.Therefore,it can be seen that there are structural differences in the effect of bank credit on the allocation efficiency of real economy capital in both spatial dimension and time dimension.