Abstract:

The economic impact of industrial policy is an important issue of academic concern. However， constrained by research perspective， research method， and the scarcity of natural experiment， the existing research neglect the role played by trade credit in the transmission process of industrial policy， moreover， research method of these studies needs to be improved， which leads to the insufficient academic understanding of industrial policy transmission issue. In this context， it answers the following questions： How does industrial policy affect the real economy？ What is the transmission mechanism？ In particular， does trade credit play a role in the transmission process of industrial policy？ From the perspective of industrial chain， a firms’ decision-making model introducing the impact of industrial policy is constructed， and how industrial policy affects the real economy through trade credit is analyzed. On the basis， with the help of the quasi-natural experiment of China’s Ten Industries Revitalization Plan， difference-in-difference method is used， based on the China’s listed companies data from 2007 to 2011， to find that after the introduction of the industrial policy， the firms in the experimental group take advantage of bank credit financing to provide financial support for other firms in the industrial chain through trade credit， which helped product sales and reduced inventory levels. It not only enhances our understanding of how industrial policy affects the real economy， but also helps to clarify the relationship between bank credit financing and trade credit supply with the help of the quasi-natural experiment in this paper. There is important enlightenment and reference significance for maintaining the stability of the industrial chain and promoting economic growth.

Key words: industrial policy, trade credit, product sales, difference-in-difference