Credit rationing, innovation, and productivity: Evidence from small- and medium-sized enterprises in China

摘要

Studies have shown that credit rationing hampers firm productivity. However, few studies have focused on the relationships among credit rationing, innovation, and firm productivity of small- and medium-sized enterprises in developing countries. This study addresses this research gap using a unique monthly dataset of 13,656 Chinese firms from January 2015 to December 2017 to directly measure credit rationing, and investigates how firm productivity reacts to credit rationing. The study finds that weak and strong credit rationing hamper firm productivity through the innovation channel. The study also finds that the negative effect of credit rationing is more obvious for firms with no real estate investment or less investment willingness.