An Analysis Of The Correction Mechanism Of Party Organization Building On Solving The Loan Problems For Private Enterprises

Four decades of Reform and Opening-up has been a process for the Communist Party of China to explore the organic integration of socialism and market economics,and the Non-public Party Building is one of the important institutional innovations.Therefore,this paper attempts to study the impact of the establishment of the party organizations,a normalized,institutional and organizational interaction mechanism between government and enterprises,on enterprises getting bank loans.Based on theoretical analysis,this paper proposes several mechanisms of non-public party building to help private enterprises obtain loans,that is improving policy effectiveness,utilizing party organizational resources,acting as an information intermediary,and protecting property rights.In this paper,the national private enterprise survey data from 2004 to 2008 were selected for verification.It is found that the establishment of party organizations can help private enterprises obtain loans from banks,improve the allocation efficiency of credit resources,and correct the preference of private enterprises to obtain bank loans through rent-seeking.The empirical results are also tested by methods of 2SLS and PSM and the four mechanisms proposed in this paper are verified respectively.Further,this paper investigates the financing effect of the party organizations of private enterprises under different size,age and industry,and types of borrowing bank as well as the internal and external enviroment of party organization.This study points out that party building is a long-term mechanism to supplement the market mechanism and to overcome the rent-seeking characteristics of traditional political connections,deepens the research on the mechanism and effect of party building on private enterprises,expands the solution of financing difficulties for private enterprises,and provides a specific path for the ruling party to give play to the function of the battle fortress of the party organization,to support the sustainable development of private enterprises and the construction of a new type of cordial and clean relationship between government and business.