Does Banking Competition Facilitate the Development of New Quality Productive Forces?
HE Weiwei1, ZHANG Yabin2
1. School of Economics, Hunan University of Finance and Economics, Changsha 410205, China; 2. School of Economics and Trade, Hunan University, Changsha 410079, China
Abstract Based on the panel data of 284 prefecture-level and above cities in China from 2011 to 2021, this study explores the effect of banking competition on the development of new quality productive forces. The results show that competition in the banking sector fosters the development of new quality productive forces, and this conclusion remains robust. The promoting effect of banking competition on new quality productive forces is stronger in eastern regions, periods of economic prosperity and in highly marketized areas, compared to those in central and western regions, economic contraction periods and low marketization areas. The mechanism test indicates that competition in the banking sector has promoted new quality productive forces by optimizing the allocation of capital factors, increasing credit supply and stimulating venture capital, etc. Further analysis demonstrates that improving factor endowments amplifies the promoting effect of banking competition on new quality productive forces. An increase in the market share of the five major commercial banks weakens this effect, while an increase in the market share of joint-stock banks and city commercial banks strengthens it. Moreover, relaxing financial regulation can also amplify the role of banking competition in promoting new quality productive forces.
2026, Vol. 43 
