Recently, a paper titled “research on the heterogeneous effects of credit constraints to product quality: an empirical study based on China Employer-Employee Survey data”, written by IQDS faculty Luo Lianfa, has been published in "Journal of Central University of Finance & Economics"(a Core Journal in China). This paper is based on the empirical analysis of China Employer-Employee Survey (CEES) 2015.
This paper explores different types of financial constraints which may led to different choices of enterprises on their product’s quality. Based on the enterprise survey with random sampling, this paper studies the different impacts of credit constraints on product quality. It is indicated that credit constraints from informal financial markets have a significant positive influence on product quality, while credit constraints from formal ones have a significant negative influence on it. It is suggested that the government should promote their informal finance service for domestic private firms, relieve their financial pressures and restrain their quality behaviors at the same time, thus improve their product quality at last. Moreover, the government should regulate the informal financial markets to promote the real economic development.