Synergistically promoting enterprises to replace old growth drivers with new ones: The roles of market and government

Abstract

As enterprises transition from traditional growth models to modern ones, the roles of the market and government are pivotal in facilitating this transformation. Based on the Chinese experience, this paper employs textual analysis methods to describe the transformation process from old to new growth drivers in enterprises and to identify the distinct influences of governmental and market forces. Empirical evidence demonstrates that effective government incentives and competitive market pressure both contribute significantly to development upgrades. A clear symbiotic relationship is evident between these two forces, with government intervention enhancing the effectiveness of market dynamics. However, the impact of these forces varies across different enterprises. The empirical findings suggest that by harnessing the efficient synergy between the "visible hand" of government intervention and the "invisible hand" of market forces, development modes can be upgraded, and endogenous growth can be more effectively fostered.