4.3 Impact of RCB Establishment on Capital Allocation EfficiencyThe regression results of Equation (4) are presented in Table 8. Interaction term Eit×ln (Vitc1/Vit-1c1) shows the impact of establishment of RCB on county capital allocation efficiency. The coefficients of ln (Vit/Vit-1) and Eit×ln (Vit/Vit-1) in the first column are 0.7089 and 0.0033, which are all significant at least at the 99% confidence level. Employing fixed-effect model, the coefficients remain significantly positive. And the value of interaction term rises a bit after I control individual fixed effect. I also report the impacts of control variables based on results obtained from fixed effect model. Specifically, the positive coefficients of industry structure (IS), state enterprises proportion (SE) and economic openness (EO) show that counties with higher proportion of the secondary and third industries, state enterprises and foreign direct investment have faster increase in county investment. The effect of county loan-to-deposit ratio is insignificant in fixed-effect panel regression.