The Impact Of Financing Constraints On The Employment Scale Of Chinese Trading Enterprises

Ensuring economic growth and full employment have always been the two major goals of China’s macroeconomic regulation and control.While China’s economy is growing at a high speed,a large number of jobs have been created.The 13 th five-year plan calls for the reform of the financial system to develop and support enterprises and industries with strong capacity to create jobs and create more job opportunities.In such a social environment,how to promote employment development through enterprises has become the focus of attention from all walks of life.Under the background of the continuous development of economic globalization,trade enterprises,as one of the important parts of China’s micro enterprises,have provided a strong impetus for China’s economic development and employment.It is necessary and targeted to study the effect of financing constraints on the employment scale of Chinese trading enterprises.This paper first sorts the theories related to financing constraints and enterprise employment,explores the relationship between financing constraints and employment scale,and puts forward relevant hypotheses.In terms of indicator construction,considering the diversity of measurement indicators of financing constraints,SA index is the main measurement index of financing constraints in order to avoid the endogenous of indicator measurement.In the selection of data samples,the research is based on the data samples of nearly 200,000 trade enterprises obtained from the matching and integration of China industrial enterprise database and customs database from 2000 to 2006.Based on the establishment of the research model,this paper examines the impact of financing constraints on the employment creation of trading enterprises by building a dynamic panel model and adopting a systematic GMM estimation method.In the stage of empirical research,the GMM model is first used for basic regression.In order to ensure the result of the experiment is moderate,using variable substitution and sample inspection two ways for robustness,interest on investment cash flow index and enterprise level index to replace SA index to measure of financing constraints,at the same time according to the sample to SA index divided into high finance group,the general financing constraints group and low financing constraints,the samples were estimated.Considering that financing constraints will affect the productivity and innovation level of trading enterprises,which will further affect the employment scale of enterprises,this paper introduces total factor productivity and innovation level of enterprises as regulating variables,and studies the influence channels of financing constraints on enterprise employment scale and tests them.Finally,based on the theory of enterprise heterogeneity,this paper further examines and analyzes enterprises with different sizes,forms of ownership and levels of capital intensity.The empirical results of this paper show that the increase of financing constraints significantly reduces the employment scale of Chinese trading enterprises.The results of robustness test were all significant,indicating that the basic regression results were robust.The effect of financing constraints on the employment scale of trading enterprises is to further the employment scale of enterprises by inhibiting the productivity and innovation ability of enterprises.In the aspect of different enterprise nature,the employment scale of small enterprises is more drastic when they are restricted by financing.The effect of financing constraints on the employment scale of foreign-funded enterprises is significantly lower than that of state-owned enterprises and private enterprises.High-capital-intensive trading firms lose less employment than low-capital-intensive firms when they are constrained by financing.Finally,based on the research results,this paper puts forward relevant Suggestions on how to reduce the financing constraints of China’s trading enterprises and promote employment from three aspects,namely,the government,financial institutions and enterprises.Financial institutions should strengthen the support for small and medium-sized trading enterprises and strengthen the innovation of service products.The enterprise itself needs to strengthen the credit construction,the innovation positively,enhances the enterprise production efficiency.