The Impact Of Foreign Bank Entry On Total Factor Productivity Of Chinese Manufacturing Enterprises

China’s economy is in the stage from high-speed growth to high-quality development.Improving total factor productivity(TFP)is the key to achieve high-quality economic development and build a new development pattern of "double cycle".With the in-depth development of financial liberalization and economic globalization,the entry of foreign banks will help to improve the efficiency of the host country’s banking system and the allocation efficiency of credit funds.In the new era,the key period of China’s economic transformation and development,the rational use of foreign capital will become another booster to help the development of China’s real economy.A large number of research literatures have found that the entry of foreign banks has brought significant "catfish effect",promoted the competition of banking industry and improved the efficiency of domestic banking industry.However,whether the real economy benefits from the entry of foreign banks can not be generalized.Therefore,whether the entry of foreign banks contributes to the development of China’s real economy should become the focus of further research.And the existing research has not conducted in-depth research on the impact of foreign bank entry on Chinese manufacturing enterprises.This paper will creatively study the impact of foreign bank entry on the total factor productivity of Chinese manufacturing enterprises from the perspective of enterprise heterogeneity and regional heterogeneity.On the basis of combing relevant literature and theories,this paper analyzes the impact mechanism of foreign bank entry on Chinese manufacturing enterprise TFP,and finds that foreign bank entry can affect Chinese manufacturing enterprise TFP through competitive effect and spillover effect.Based on the classified summary of the existing literature on the entry of foreign banks and the TFP of Chinese manufacturing enterprises,this paper further analyzes the development status of foreign banks and the TFP of Chinese manufacturing enterprises.Based on the data of China’s A-share manufacturing listed companies from 2009 to 2019,this paper makes an empirical study on the impact of the entry of foreign banks on the TFP of Chinese manufacturing enterprises through the fixed effect model,and analyzes the heterogeneity analysis of enterprise scale and the heterogeneity analysis of the region where the enterprise is located,the conclusions and policy suggestions of this paper are obtained.The empirical results show that the entry of foreign banks can significantly promote the improvement of TFP of Chinese manufacturing enterprises,and this result is robust.Specifically,from the perspective of enterprise heterogeneity,due to the "fat skimming effect",the entry of foreign banks has effectively improved the TFP of large-sized enterprises and medium-sized enterprises,but it has not had a positive impact on small and micro enterprises,and even a negative effect;from the perspective of regional heterogeneity,the main beneficiary areas of foreign banks’entry are the economically developed provinces in eastern China,and the impact of foreign banks’ entry on Chinese manufacturing enterprises decreases successively in the eastern,central,northeast and western regions,and even has a significant negative correlation at the 1%confidence level in the economically backward western region,That is,the entry of foreign banks is likely to reduce the TFP of manufacturing enterprises in the western region.To sum up,the main policy recommendations of the article are:first,we should try our best to ensure the national treatment of foreign banks and accelerate their localization;second,further reduce the market access threshold of foreign banks and guide the formulation of investment policies of foreign banks through policies;third,through relevant policies and measures,guide foreign banks to expand their customer groups from a few excellent customers to low-level small and medium-sized enterprises with their deepening;fourth,continuously improve the financial ecology,reduce the investment risks of foreign banks,enhance the investment confidence of foreign banks,promote the flow of funds to various Chinese enterprises and improve the efficiency of capital allocation;fifth,increase direct financing and reduce the capital cost of enterprises.The innovation of this paper is reflected in the following two aspects:first,from the perspective of enterprises,this paper studies the impact effect and action channel of foreign bank entry on TFP of Chinese manufacturing enterprises,and creatively combines the two.Second,it analyzes the heterogeneous impact of foreign bank entry on Chinese manufacturing enterprises TFP from the aspects of enterprise scale and regional distribution,and explores the differences of the impact of foreign bank entry on Chinese manufacturing enterprises in different regions.