Abstract: Based on analyzing the influence mechanism that credit constraints affect the misallocation, this paper measured the mismatch and intra industry mismatches in the process of factor allocation by use of 1998-2007 Chinese data of industrial enterprises. Empirical analysis found that: credit constraints presented a U shaped nonlinear relationship with the mismatch of resources within-industry and within-plant, that is, with the rise of financing constraints, enterprise and industry resources mismatch degree will decrease first and then increase; credit constrints behaves different in the different group divided by ownership,region and factor intensity. The coefficient in the sample of state-owned enterprises doesn′t show robust，and that appears to be different in the industry and plant misallocation when we distinguish the sample into east areas and missdle-west areas，while that shows robust in the capital-intensive industry；at last，we use industry-level data to do further robust test.

Key words: credit constraints, misallocation, empirical study