WANG Jianxin,HUANG Peng:Credit Constraints, Capital Allocation and Quality of Export Product

Abstract：What kind of role does credit constraint play on a country's export enterprises to upgrade their product quality? This study shows that the impact of credit constraints on export product quality is significantly negative, because companies cannot get adequate funding and significantly reduce the dynamic behavior of high-quality investment due to credit constraints.But industry capital allocation efficiency not only allows companies' need for external credit funds to be met by accelerating capital allocation, but also allows companies to have more funds to invest in fixed-asset investment to improve the technological content of products and enterprise productivity and quality, which ultimately helps organizations allocate funds to improve product quality.In addition, credit constraint plays a different role on affecting collective-owned enterprises and private enterprises and foreign enterprises.Credit constraint performs differently in general trade and processing trade.After using other indicators of credit constraints to conduct robustness tests, bank credit constraints having a similar economic implication with credit constraint indicator constructed by this paper are consistent with our conclusions, and commercial credit constraints having inconsistent economic implications with this paper show negative impact on the quality of export product, which cannot be eliminated by improving the efficiency of capital allocation.

Key words： Credit Constraints    Efficiency of Capital Allocation    Quality of Export Product

source:Finance & Trade Economics ,No.5,2015