The Impact Of Interest Rate Marketization On Enterprise TFP

As China's economy enters the "new normal",the traditional extensive development mode is not enough to support China's economic growth.The replacement of resource elements by technological elements and the promotion of economic growth by promoting total factor productivity(TFP)have become the key to the sustainable development of China's economy.However,interest rate liberalization,as a typical financial restraint policy and the resulting credit intervention,leads to resource mismatch or inefficient allocation of resources,hindering the promotion of corporate TFP.The interest rate liberalization reform gradually relaxes until the regulation or restriction of interest rate levels and their changes is lifted.Based on the above realities,considering the impact of interest rate liberalization on corporate TFP,China has a significant practical significance in the current gradual disappearance of demographic dividends,deepening of capital,and the gradual change of factor endowments.As the core of financial reform,interest rate liberalization improves the efficiency of credit resource allocation by eliminating interest rate controls and credit interventions,and releases the next round of institutional dividends that improve the efficiency of resource allocation.The reconfiguration of credit resources is manifested in the two aspects of “intensity margin” and “extension margin”.Based on this,we first sort out the relationship between interest rate liberalization and enterprises' TFP from the intensive marginal effect of credit resource allocation and the generalized marginal effect.Secondly,measure the interest rate liberalization indicators and use the2001-2015 corporate panel data to measure the enterprises' TFP index.Finally,conduct an empirical test on interest rate liberalization and enterprises' TFP,the results show: The net effect of interest rate liberalization on corporate TFP is positive,and its binary marginal effect of credit resource allocation,namely,intensive marginal effect and extended marginal effect,have a positive impact on enterprises' TFP.The impact of interest rate liberalization on corporate TFP is significantly different due to differences in firm types and firm productivity levels: interest rate liberalization has a greater effect on the TFP promotion of private enterprises by improving the binary marginal effect of corporate credit resource allocation,and the effect is more significant.The net effect of interest rate liberalization on the net effect of TFP and the coefficient of binary marginal effect of the low,medium and high enterprises are both high and low in the middle.This topic provides a theoretical and practical basis for how to better implement the interest rate liberalizationreform to better improve the TFP level of Chinese enterprises.