Abnormal Investment Efficiency and Monetary Policy Choice under the Financing Constraint Hypothesis

DOI

10.2991/edmi-19.2019.69How to use a DOI?

Keywords

financing constraints crowding out effect investment efficiency monetary policy choice.

Abstract

Early sample studies show that the investment efficiency of state-owned enterprises is lower than that of non-state-owned enterprises due to long-term over-investment in China. In the industries subject to external financing constraints, state-owned enterprises get credit support, resulting in crowding-out effect, which leads to serious financing constraints of non-state-owned enterprises, and investment efficiency is lower than that of state-owned enterprises. In recent years, the frequent regulation of monetary policy has increased the difference between state-owned and non-state-owned enterprises in financing constraints, and the gap between investment efficiency of enterprises has widened. Quantitative monetary policy is asymmetric. Loose interest rate policy can reduce marginal financing costs and improve investment efficiency of non-state-owned enterprises. Credit expansion is more inclined to state-owned enterprises, which has obvious effects on reducing their financing constraints and improving investment efficiency.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Zhaoqi Tan
PY  - 2019/08
DA  - 2019/08
TI  - Abnormal Investment Efficiency and Monetary Policy Choice under the Financing Constraint Hypothesis
BT  - Proceedings of the 1st International Symposium on Economic Development and Management Innovation (EDMI 2019)
PB  - Atlantis Press
SP  - 416
EP  - 425
SN  - 2352-5428
UR  - https://doi.org/10.2991/edmi-19.2019.69
DO  - 10.2991/edmi-19.2019.69
ID  - Tan2019/08
ER  -