Analysis on the Impact of Financing Capacity on Chinese Enterprises' Productivity

This paper uses Chinese industrial enterprises database over the period 2001-2007 to study the relationship between enterprise financing ability and enterprise productivity. It is found that: firstly, enterprise external financing ability has a positive impact on enterprise productivity, the impact of external financing ability on private enterprise is greater and more significant. Secondly, private export enterprise productivity significantly depends on external financing capacity. At last, the entry of foreign capital can improve enterprise productivity; external financing capacity can promote enterprise productivity through guaranteeing the implementation of R&D activities.