Research On Heterogeneous Effects Of Monetary Policy Interest Rate Transmission

As the main macro policy,the transmission channel of monetary policy to micro-enterprise behavior has always been a research hotspot And it is also the theoretical basis for policy formulation and implementation.In China,where investment is the primary engine of economic growth,it is especially important to use investment as a research perspective.The transmission of monetary policy to corporate investment is mainly carried out through interest rate channels,that is,by changing the market interest rate,causing changes in capital costs,which in turn a affects corporate investment.Therefore,the key to examining the interest rate transmission mechanism is to test the investment-capital cost sensitivity.Because different enterprises have different reflections in the face of monetary policy shocks,this paper,combines the heterogeneity of the enterprise and the system,from the perspective of financing constraints,property rights and financial marketization,studies the interest rate transmission,mechanism of monetary policy on corporate investment behavior.Under the framework of neoclassical investment theory,this paper combines macroeconomics and corporate finance theory,selects the panel data of China's listed companies from 2004 to 2017,adopts the error correction model(ECM)and the system GMM dynamic panel estimation method,estimates from three levels:(1)Whether the monetary policy interest rate transmission mechanism is effective on investment;(2)Whether the investment-capital cost sensitivity of enterprises with different financing constraints and property rights characteristics is significantly different;(3)Whether the interaction of financing constraints and property rights will affect the transmission.In further research,the impact of financial marketization was examined.The empirical results show that:(1)Monetary policy interest rate transmission on China's corporate investment behavior is generally effective,credit transmission has amplifying effect on interest rate transmission;(2)Enterprises with higher financing constraints and state-owned property have higher investment-capital costs sensitivity,which make interest rate channel more smoothly;(3)State-owned property will weaken the excessive reaction of financing-constrained firms,while distorting the transmission of interest rate in non-financing-constrained firms;(4)Compared with enterprises in a lower degree of financial marketization,the enterprises in higher degree of financial marketization has larger investment-capital cost sensitivity.Based on the conclusions,this paper proposes three policy recommendations:(1)Fully consider the characteristics of micro-enterprises,and formulate monetary policy in a targeted manner;(2)Deepen the reform of state-owned enterprises and form a fair lending market;(3)Accelerate the financial marketization reform and smooth the interest rate transmission channel.