Can Banking Sector Competition Increase Urban Entrepreneurial Vitality?——From the Dual Perspectives of Credit Availability and Credit Allocation Efficiency
Accelerating the market-oriented reform of the banking industry,guiding the full competition of the banking industry,and providing higher-quality and more efficient credit services are important supports for enhancing the entrepreneurial vitality of cities.It utilized the panel data of prefecture-level cities in China,and systematically examined the impact of banking sector competition on urban entrepreneurial vitality from the dual perspectives of credit availability and credit allocation efficiency.It finds that banking sector competition has a significant positive impact on urban entrepreneurial vitality.After using instrumental variable method to deal with endogeneity issues,the result still supports this conclusion.The mechanism test shows that banking sector competition boosts urban entrepreneurial vitality through two mechanisms of increasing the credit availability and improving credit allocation efficiency.The heterogeneity test shows that the boosting effect of banking sector competition on urban entrepreneurial vitality varies significantly,being stronger in southern cities,larger cities,and cities with lower degree of economic nationalization than those in northern cities,smaller cities,and cities with higher degree of economic nationalization.Furthermore,a threshold model was constructed and it found that the impact of credit availability and credit allocation efficiency on urban entrepreneurial vitality is constrained by the degree of banking sector competition,indicating the existence of a threshold effect of banking sector competition.The conclusions enrich the related research on financial support for entrepreneurship and provide corresponding reference for China's continuous push for market-oriented reform of the banking sector.
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