Dynamic Relationship And Regional Difference Between Credit Rationing And Economic Growth

During the four decades of reform and opening up,Chinese economic output has risen to the second highest in the world.At the same time as China's rapid economic growth,Chinese bank's total assets,structure,and regional distribution have also undergone tremendous changes,and regional economic differences have begun to show up.The issue of rationing has also become increasingly prominent.What is the role of credit rationing for economic growth and whether there are differences among various regions has become an important research issue.Based on the literature of theoretical and empirical studies at home and abroad,this paper summarizes three kinds of relationships between the credit rationing and economic growth in the past and expounds the reasons for the formation of credit rationing and the mechanism of credit rationing on economic growth.By analyzing qualitatively and quantitatively credit rationing and economic growth at the national and the three major economic regional levels,this paper reveals that there is an obvious trend of growth in the total amount of bank credit in our country,but also a serious imbalance in regional distribution.This imbalance allocation of credit resources is likely to bring about a vicious cycle of economic growth in areas where credit resources are not sufficient,it won't be conducive to the coordinated development among regions.A PVAR model is established to empirically analyze the dynamic correlation between credit rationing and economic growth and regional differences by provincial panel data from 2003 to 2016.The results show that there is a two-way causal relationship between credit rationing and economic growth as a whole;credit rationing has a negative effect on economic growth,that is,credit rationing is unfavorable to economic growth while economic growth has a sustained release effect on credit rationing;the correlation between credit rationing and economic growth has large regional differences,indicating that the efficiency of allocating credit resources among different regions is different.Finally,this paper puts forward countermeasures and suggestions on how to optimize the credit rationing of banks,improve the efficiency of credit funds allocation and promote the coordinated development of regional economy.