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Can Bank Competition Promote the Export of Small and Micro Enterprises—Based on the Perspective of Offering Fuel in Snowy Weather

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  • Lei Zhang

    (Economics and Management School, Wuhan University, Wuhan 430072, China)

Abstract

Based on the China Micro and Small Enterprise Survey (CMES) and the financial license of the China Bank and Insurance Regulatory Commission, this paper theoretically and empirically analyzes the influence of bank competition on the export of small and micro enterprises and its mechanisms. This study finds that bank competition can promote the export tendency of small and micro enterprises and increase their export volume. This conclusion is still valid after the robustness test and endogenous treatment. Mechanism analysis demonstrates that strengthening bank competition can promote the export of enterprises with higher financing constraints and enterprises with lower productivity, highlighting the function of offering fuel in snowy weather. Higher financial literacy of enterprise organizers can improve the role of bank competition in promoting the export of small and micro enterprises. The heterogeneity analysis shows that bank competition plays a stronger role in the export of enterprises in the eastern and western regions, large-scale enterprises, and enterprises in industrial parks. Therefore, it is of great significance to reasonably strengthen the competition of the bank industry, carry out financial knowledge education among enterprises, and speed up the establishment of industrial parks to promote the export of small and micro enterprises, and ensure steady economic growth.

Suggested Citation

  • Lei Zhang, 2022. "Can Bank Competition Promote the Export of Small and Micro Enterprises—Based on the Perspective of Offering Fuel in Snowy Weather," Sustainability, MDPI, vol. 14(20), pages 1-14, October.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:20:p:13542-:d:947664
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    References listed on IDEAS

    as
    1. Yue Ma & Baozhi Qu & Yifan Zhang, 2012. "Complex Goods' Exports and Institutions: Empirics at the Firm Level," Review of International Economics, Wiley Blackwell, vol. 20(4), pages 841-853, September.
    2. Beck, Thorsten & Demirguc-Kunt, Asli & Maksimovic, Vojislav, 2004. "Bank Competition and Access to Finance: International Evidence," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(3), pages 627-648, June.
    3. Chaney, Thomas, 2016. "Liquidity constrained exporters," Journal of Economic Dynamics and Control, Elsevier, vol. 72(C), pages 141-154.
    4. Cornaggia, Jess & Mao, Yifei & Tian, Xuan & Wolfe, Brian, 2015. "Does banking competition affect innovation?," Journal of Financial Economics, Elsevier, vol. 115(1), pages 189-209.
    5. repec:spo:wpmain:info:hdl:2441/5g3sadr9h8gbri8hrtq0h6au2 is not listed on IDEAS
    6. repec:hal:spmain:info:hdl:2441/5g3sadr9h8gbri8hrtq0h6au2 is not listed on IDEAS
    7. Haoyu Gao & Hong Ru & Robert Townsend & Xiaoguang Yang, 2019. "Rise of Bank Competition: Evidence from Banking Deregulation in China," NBER Working Papers 25795, National Bureau of Economic Research, Inc.
    8. Leon, Florian, 2015. "Does bank competition alleviate credit constraints in developing countries?," Journal of Banking & Finance, Elsevier, vol. 57(C), pages 130-142.
    Full references (including those not matched with items on IDEAS)

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