The policy of tax credit bank loan promotes employment in small and micro enterprises

Chen Feng; Shuning Liang; Cong Li; Xiaofang Xu

doi:10.1016/j.ceqi.2026.03.003

The policy of tax credit bank loan promotes employment in small and micro enterprises

Chen Feng
, Shuning Liang
, Cong Li
, Xiaofang Xu

School of Economics and Finance (SOEF)

Shanghai University of Finance and Economics
Beijing Technology and Business University

Research output: Contribution to journal › Article › peer-review

Abstract

Using the policy of tax credit bank loan (TCBL) as a case study, this paper examines how the reduction in asymmetry in the information of “Banks, Tax Authorities, and Enterprises” affects the level of employment of small and micro enterprises. This paper finds that the implementation of the TCBL can significantly increase the employment level and employment growth rate of SMEs. This effect primarily stems from the increase in the financing level of micro and small enterprises and the expansion of the sector. Moreover, the policy is associated with positive gains in firm productivity and production capacity.

Original language	English
Pages (from-to)	40-51
Number of pages	12
Journal	China Economic Quarterly International
Volume	6
Issue number	1
DOIs	https://doi.org/10.1016/j.ceqi.2026.03.003
State	Published - Mar 2026

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth
SDG 9 Industry, Innovation, and Infrastructure

Keywords

Employment
Small and micro enterprises
Tax credit Bank loan (TCBL)

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10.1016/j.ceqi.2026.03.003

Cite this

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title = "The policy of tax credit bank loan promotes employment in small and micro enterprises",

abstract = "Using the policy of tax credit bank loan (TCBL) as a case study, this paper examines how the reduction in asymmetry in the information of “Banks, Tax Authorities, and Enterprises” affects the level of employment of small and micro enterprises. This paper finds that the implementation of the TCBL can significantly increase the employment level and employment growth rate of SMEs. This effect primarily stems from the increase in the financing level of micro and small enterprises and the expansion of the sector. Moreover, the policy is associated with positive gains in firm productivity and production capacity.",

keywords = "Employment, Small and micro enterprises, Tax credit Bank loan (TCBL)",

author = "Chen Feng and Shuning Liang and Cong Li and Xiaofang Xu",

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year = "2026",

month = mar,

doi = "10.1016/j.ceqi.2026.03.003",

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T1 - The policy of tax credit bank loan promotes employment in small and micro enterprises

AU - Feng, Chen

AU - Liang, Shuning

AU - Li, Cong

AU - Xu, Xiaofang

PY - 2026/3

Y1 - 2026/3

N2 - Using the policy of tax credit bank loan (TCBL) as a case study, this paper examines how the reduction in asymmetry in the information of “Banks, Tax Authorities, and Enterprises” affects the level of employment of small and micro enterprises. This paper finds that the implementation of the TCBL can significantly increase the employment level and employment growth rate of SMEs. This effect primarily stems from the increase in the financing level of micro and small enterprises and the expansion of the sector. Moreover, the policy is associated with positive gains in firm productivity and production capacity.

AB - Using the policy of tax credit bank loan (TCBL) as a case study, this paper examines how the reduction in asymmetry in the information of “Banks, Tax Authorities, and Enterprises” affects the level of employment of small and micro enterprises. This paper finds that the implementation of the TCBL can significantly increase the employment level and employment growth rate of SMEs. This effect primarily stems from the increase in the financing level of micro and small enterprises and the expansion of the sector. Moreover, the policy is associated with positive gains in firm productivity and production capacity.

KW - Employment

KW - Small and micro enterprises

KW - Tax credit Bank loan (TCBL)

UR - https://www.scopus.com/pages/publications/105034642933

U2 - 10.1016/j.ceqi.2026.03.003

DO - 10.1016/j.ceqi.2026.03.003

M3 - 文章

AN - SCOPUS:105034642933

SN - 2666-9331

VL - 6

SP - 40

EP - 51

JO - China Economic Quarterly International

JF - China Economic Quarterly International

IS - 1

ER -

The policy of tax credit bank loan promotes employment in small and micro enterprises

Abstract

UN SDGs

Keywords

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