The Study On The Influence Of Standing Loan Facility On Industrial Added Value

At present,economic development in our country has entered a period of structural transformation and adjustment.Banks are sometimes faced with tight liquidity.As to adjustments to liquidity issues,traditional monetary policy instruments such as open market operations have limited effects on market interest rates,especially when market interest rates have risen or largely fluctuated.Therefore,with the deepening of economic transformation,the monetary policy has also been adjusted accordingly.The People's Bank of China established new innovative monetary policy tools such as standing loan facilities in the process of structural transformation of economic development.Using its characteristics of precision,focus,and orientation,it will directionally adjust bank liquidity,stabilize market interest rate volatility,reduce financial market risk,and promote steady economic growth.Under this background,it is significant and necessary to explore the impact of China's standing loan facilities on industrial added value.The paper starts with the implementation background and significance of standing loan facilities,and shows that under the background of economic restructuring,it is of great significance and necessity to explore the influence of standing loan facilities on China's industrial added value and its transmission mechanism.By defining the concept of standing loan facilities,the paper reviews the literature on monetary policy transmission mechanism,the use of innovative monetary policy tools and the effects and channels of standing loan facilities at home and abroad.Based on investment expenditure channels,consumer spending channels,and international trade channels,this paper analyzes the transmission mechanism that standing loan facilities acting on industrial added value,combining with some theories such as "Credit Availability Theory","Wealth Effect","Mundell-Fleming Model".Through empirical research which uses the VAR model,it has been found that standing loan facilities can reduce market interest rates and promote the increase in the growth rate of industrial added value by building an interest rate corridor.However,in the three transmission channels,investment expenditure channels have shown more significant and important conduction in the process of standing loan facilities acting on industrial added value.The channels of consumer spending channels are subject to certain restrictions,and the conduction of international trade channels is ineffective.Therefore,in order to verify the more significant transmission performance of investment expenditure channels,this paper uses the individual fixed effect model to conduct empirical analysis of investment expenditure channels again.The empirical results show that standing loan facilities are positively related to the growth rate of industrial added value,and investment expenditure channels play an important role in the transmission process.Finally,based on empirical analysis,the paper puts forward corresponding policy recommendations from the aspects of timely monitoring of market interest rate fluctuations,strengthening the implementation of standing loan facilities,promoting the optimization of economic structure,and strengthening the construction of foreign exchange markets.