Author(s)

WANG Yebin, XU Xuefang

Corresponding Author

XU Xuefang

Abstract

With Chinese provincial panel data, this article examines the relationship between banking market structure and enterprise's technological innovation. Based on fixed effects Estimator and SGMM estimator of the regression, results show that banking market structure have a significantly negative impact on enterprises ' technological innovation, increasing concentration in the banking is not conducive to enterprise's technical innovation. Direct implication of this conclusion is, devoting major efforts to developing small and medium banks, improving the market share of small and medium banks, building a sound banking market structure to match the structure of real economy are essential for improving the ability of technological innovation of Chinese enterprises.

Keywords

Banking market structure; Enterprise's technological innovation; System GMM