Pub Date : 2025-10-22DOI: 10.1016/j.chieco.2025.102578
Jianqing Ruan , Xiaobo Zhang
An industrial cluster is a geographic area with a concentration of large numbers of firms in related industries. However, many clustering measures, such as regional specialization and industrial concentration measures, often overlook the two core features of clusters: industrial relatedness and scale. A few recently developed measures which address both factors are limited to specific industries and do not provide a regional-level perspective. In this paper, we introduce a novel clustering index that incorporates both relatedness and scale. Taking China as an example, we demonstrate that our index significantly outperforms existing measures in predicting major industrial clusters, both in the short and long term. Additionally, we show a positive correlation between the initial level of our clustering index and subsequent local economic performance, as measured by nighttime light intensity, patent grants, and the number of new businesses.
{"title":"A measure of industrial clustering: Considering relatedness and scale","authors":"Jianqing Ruan , Xiaobo Zhang","doi":"10.1016/j.chieco.2025.102578","DOIUrl":"10.1016/j.chieco.2025.102578","url":null,"abstract":"<div><div>An industrial cluster is a geographic area with a concentration of large numbers of firms in related industries. However, many clustering measures, such as regional specialization and industrial concentration measures, often overlook the two core features of clusters: industrial relatedness and scale. A few recently developed measures which address both factors are limited to specific industries and do not provide a regional-level perspective. In this paper, we introduce a novel clustering index that incorporates both relatedness and scale. Taking China as an example, we demonstrate that our index significantly outperforms existing measures in predicting major industrial clusters, both in the short and long term. Additionally, we show a positive correlation between the initial level of our clustering index and subsequent local economic performance, as measured by nighttime light intensity, patent grants, and the number of new businesses.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102578"},"PeriodicalIF":5.5,"publicationDate":"2025-10-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145361719","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-17DOI: 10.1016/j.chieco.2025.102571
Siru Chen , Guangjun Shen , Li Zhang
Administrative divisions significantly influence China's economic integration and industrial layout. This study documents a stylized fact of land allocation in China: the less-developed cities are inclined to lease industrial land near their border with more-developed cities. We call it the “border effect.” Using detailed information on over a million transactions of land plots, we construct a city-level panel dataset spanning from 2007 to 2019 to explore the border effect. The empirical analysis shows that a city leases 1.49 percentage points more industrial land near its border with a more-developed city on average, as compared with its border with a less-developed city. The border effect is robust to alternative measures and various specifications, and more profound for cities left behind their adjacent cities by a wide margin. Mechanism analysis reveals that the land constraint of more-developed cities and their strategic land-use expansion to less-developed neighbors are the main causes of the border effect.
{"title":"The border effect of industrial development in China","authors":"Siru Chen , Guangjun Shen , Li Zhang","doi":"10.1016/j.chieco.2025.102571","DOIUrl":"10.1016/j.chieco.2025.102571","url":null,"abstract":"<div><div>Administrative divisions significantly influence China's economic integration and industrial layout. This study documents a stylized fact of land allocation in China: the less-developed cities are inclined to lease industrial land near their border with more-developed cities. We call it the “border effect.” Using detailed information on over a million transactions of land plots, we construct a city-level panel dataset spanning from 2007 to 2019 to explore the border effect. The empirical analysis shows that a city leases 1.49 percentage points more industrial land near its border with a more-developed city on average, as compared with its border with a less-developed city. The border effect is robust to alternative measures and various specifications, and more profound for cities left behind their adjacent cities by a wide margin. Mechanism analysis reveals that the land constraint of more-developed cities and their strategic land-use expansion to less-developed neighbors are the main causes of the border effect.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102571"},"PeriodicalIF":5.5,"publicationDate":"2025-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145361684","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-17DOI: 10.1016/j.chieco.2025.102574
Miao Jin , Jian Li , Juanjuan Meng , Jingwei Sun
This paper examines the role of background ambiguity in intertemporal choice. Using natural variation in background ambiguity from the uncertainty surrounding summer vacation and a within-subject difference-in-differences experimental design, we find that individuals tend to avoid allocating money to the summer period, leading to nonmonotonic changes in discount rates. To investigate the underlying mechanism, we exogenously increase summer planning efforts and find that this reduces perceived background ambiguity about summer and increases individuals' willingness to allocate money to that period. These findings suggest that background ambiguity plays an important role in shaping intertemporal preferences.
{"title":"Background ambiguity and intertemporal choice: An experimental study on the effect of summer vacation","authors":"Miao Jin , Jian Li , Juanjuan Meng , Jingwei Sun","doi":"10.1016/j.chieco.2025.102574","DOIUrl":"10.1016/j.chieco.2025.102574","url":null,"abstract":"<div><div>This paper examines the role of background ambiguity in intertemporal choice. Using natural variation in background ambiguity from the uncertainty surrounding summer vacation and a within-subject difference-in-differences experimental design, we find that individuals tend to avoid allocating money to the summer period, leading to nonmonotonic changes in discount rates. To investigate the underlying mechanism, we exogenously increase summer planning efforts and find that this reduces perceived background ambiguity about summer and increases individuals' willingness to allocate money to that period. These findings suggest that background ambiguity plays an important role in shaping intertemporal preferences.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102574"},"PeriodicalIF":5.5,"publicationDate":"2025-10-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145361685","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-12DOI: 10.1016/j.chieco.2025.102573
Tariq H. Malik , Jack W. Hou
While the Chinese narrative promotes inclusive development, shared economies and sustainable futures, the American narrative highlights its negative impact on the world. This study explores whether the narratives of the leading news media in the USA emit negative sentiments towards the BRI (Belt and Road Initiative) project over the last 10 years, from the BRI's birth in 2013 to adolescence in 2023. During this period, some 3569 articles were written in the two prominent publications in the USA—The Wall Street Journal (WSJ) and Dow Jones Newswires (DJN) concerning the BRI. This study analyzed them using media theories to discern the prevailing attitudes and perceptions expressed in these articles in terms of heuristics (taxonomy, temporality, texture, and tendency). We made four discoveries related to the sentiments contextualised in the media narratives about the BRI project. First, the WSJ embeds negative sentiments in its narrative more than the DJN does. Second, the temporal line reveals that negative sentiment increased as the BRI project grew towards youth. Third, the concrete (vs abstract) texture of the narrative is more negative and WSJ is more concrete than DJN is. Fourth, the political discourse in the context (people, groups, country) reveals negative tendencies, but business discourse in the institutional/corporate contexts reveals positive tendencies. These findings offer valuable insights into the evolving perceptions and attitudes surrounding the BRI project in influential global media outlets in America, providing a nuanced understanding of how media framing (taxonomy), temporality, texture, and tendency are driving the discourse and geopolitical influence on the public mind.
{"title":"Adverse sentiments in the American media houses towards the Belt & Road Initiative (BRI): An analysis of the taxonomy, trend, texture, and tendency","authors":"Tariq H. Malik , Jack W. Hou","doi":"10.1016/j.chieco.2025.102573","DOIUrl":"10.1016/j.chieco.2025.102573","url":null,"abstract":"<div><div>While the Chinese narrative promotes inclusive development, shared economies and sustainable futures, the American narrative highlights its negative impact on the world. This study explores whether the narratives of the leading news media in the USA emit negative sentiments towards the BRI (Belt and Road Initiative) project over the last 10 years, from the BRI's birth in 2013 to adolescence in 2023. During this period, some 3569 articles were written in the two prominent publications in the USA—The Wall Street Journal (WSJ) and Dow Jones Newswires (DJN) concerning the BRI. This study analyzed them using media theories to discern the prevailing attitudes and perceptions expressed in these articles in terms of heuristics (taxonomy, temporality, texture, and tendency). We made four discoveries related to the sentiments contextualised in the media narratives about the BRI project. First, the WSJ embeds negative sentiments in its narrative more than the DJN does. Second, the temporal line reveals that negative sentiment increased as the BRI project grew towards youth. Third, the concrete (vs abstract) texture of the narrative is more negative and WSJ is more concrete than DJN is. Fourth, the political discourse in the context (people, groups, country) reveals negative tendencies, but business discourse in the institutional/corporate contexts reveals positive tendencies. These findings offer valuable insights into the evolving perceptions and attitudes surrounding the BRI project in influential global media outlets in America, providing a nuanced understanding of how media framing (taxonomy), temporality, texture, and tendency are driving the discourse and geopolitical influence on the public mind.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102573"},"PeriodicalIF":5.5,"publicationDate":"2025-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145324545","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We examine the effect of founder control on breakthrough innovation among Chinese high-tech firms from 2008 to 2022. We measure founder control by the equity held by founders actively involved in governance and identify breakthrough innovation with Sentence-BERT (SBERT) embeddings of patent texts. We find a strong positive association between founder control and future breakthrough innovation. Using unexpected founder departures as an instrument, our identification strategy establishes a robust causal relationship. The underlying mechanisms include talent investment, internal discipline, strategic reorientation, and technological resilience. The effect is heterogeneous across founding team's size, internal structure, attributes, and tenure. Our results support a structural view of founder governance where concentrated control serves as an engine for corporate innovation.
{"title":"Founder control and breakthrough innovation: Evidence from high-tech firms in China","authors":"Zi-Qi Zhang , Bao-Jun Tang , Zhi Su , Yongji Zhang","doi":"10.1016/j.chieco.2025.102572","DOIUrl":"10.1016/j.chieco.2025.102572","url":null,"abstract":"<div><div>We examine the effect of founder control on breakthrough innovation among Chinese high-tech firms from 2008 to 2022. We measure founder control by the equity held by founders actively involved in governance and identify breakthrough innovation with Sentence-BERT (SBERT) embeddings of patent texts. We find a strong positive association between founder control and future breakthrough innovation. Using unexpected founder departures as an instrument, our identification strategy establishes a robust causal relationship. The underlying mechanisms include talent investment, internal discipline, strategic reorientation, and technological resilience. The effect is heterogeneous across founding team's size, internal structure, attributes, and tenure. Our results support a structural view of founder governance where concentrated control serves as an engine for corporate innovation.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102572"},"PeriodicalIF":5.5,"publicationDate":"2025-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145415944","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-11DOI: 10.1016/j.chieco.2025.102567
Zongwu Cai, Jinyan Li
The escalating trade war between China and the US, initiated in 2018, has significantly impacted the trade pattern of these two nations. This event can be treated as an intervention which has led to a series of retaliatory actions, resulting in substantial economic and trade frictions between the two largest economies. This paper aims to analyze the economic impacts of the trade war effects using advanced econometric techniques. Our empirical study employs panel data analysis combined with a factor model, inspired by the methodologies of Hsiao, Ching and Wan (2012) and Bai, Li and Ouyang (2014), to construct trade patterns for both China and the US. By using annual trade data from multiple countries as a control group, we construct counterfactual results for China’s and the US’s imports, exports, and trade balance, respectively. Under a nonstationary setting, the counterfactual results indicate a significant decline in China’s exports and a notable reduction in its trade surplus with the US post-2018. Meanwhile, US imports from China decreased, aligning with the trade war’s goal of reducing the trade deficit, while US exports to China unexpectedly increased, possibly influenced by the Phase One trade agreement. We also perform a dynamic permutation test on treatment effects over time, which ensures the rigor and significance of our analysis, reinforcing the reliability of the estimated effects. Finally, we conduct an empirical comparative analysis with alternative methods to demonstrate that our chosen approach is particularly well-suited to the context of this study.
2018年开始的中美贸易战不断升级，对两国贸易格局产生了重大影响。这一事件可以被视为一种干预，导致了一系列报复行动，导致两个最大经济体之间出现了大量的经济和贸易摩擦。本文旨在运用先进的计量经济学方法分析贸易战效应的经济影响。我们的实证研究采用面板数据分析结合因子模型，灵感来自Hsiao， Ching and Wan（2012）和Bai， Li and Ouyang（2014）的方法，构建中美两国的贸易模式。通过使用多个国家的年度贸易数据作为对照组，我们分别构建了中国和美国的进口、出口和贸易平衡的反事实结果。在非平稳背景下，反事实结果表明，2018年后中国出口大幅下降，对美贸易顺差显著减少。与此同时，美国从中国的进口减少，符合贸易战减少贸易逆差的目标，而美国对中国的出口意外增加，可能受到第一阶段贸易协定的影响。我们还对治疗效果进行了随时间变化的动态排列测试，这确保了我们分析的严谨性和重要性，加强了估计效果的可靠性。最后，我们与其他方法进行了实证比较分析，以证明我们选择的方法特别适合本研究的背景。
{"title":"Econometric evaluation of the China–US trade war effects","authors":"Zongwu Cai, Jinyan Li","doi":"10.1016/j.chieco.2025.102567","DOIUrl":"10.1016/j.chieco.2025.102567","url":null,"abstract":"<div><div>The escalating trade war between China and the US, initiated in 2018, has significantly impacted the trade pattern of these two nations. This event can be treated as an intervention which has led to a series of retaliatory actions, resulting in substantial economic and trade frictions between the two largest economies. This paper aims to analyze the economic impacts of the trade war effects using advanced econometric techniques. Our empirical study employs panel data analysis combined with a factor model, inspired by the methodologies of Hsiao, Ching and Wan (2012) and Bai, Li and Ouyang (2014), to construct trade patterns for both China and the US. By using annual trade data from multiple countries as a control group, we construct counterfactual results for China’s and the US’s imports, exports, and trade balance, respectively. Under a nonstationary setting, the counterfactual results indicate a significant decline in China’s exports and a notable reduction in its trade surplus with the US post-2018. Meanwhile, US imports from China decreased, aligning with the trade war’s goal of reducing the trade deficit, while US exports to China unexpectedly increased, possibly influenced by the Phase One trade agreement. We also perform a dynamic permutation test on treatment effects over time, which ensures the rigor and significance of our analysis, reinforcing the reliability of the estimated effects. Finally, we conduct an empirical comparative analysis with alternative methods to demonstrate that our chosen approach is particularly well-suited to the context of this study.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102567"},"PeriodicalIF":5.5,"publicationDate":"2025-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145324554","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-11DOI: 10.1016/j.chieco.2025.102568
Dandan Zhu , Xiangdong Wang , Yifan Zhang
This study introduces a novel narrative monetary policy expectation () index for China, constructed through the semantic analysis of more than one million economic news articles. While our aligns with macro- and micro-survey-based monetary policy expectation indicators, it offers distinct advantages, including higher frequency, timeliness, and cost-effectiveness. Employing a time-varying parameter vector autoregression model, we find that the expectation of expansionary monetary policy is associated with economic downturns or inflation declines. Furthermore, monetary policy expectation is more responsive to GDP during downturns and more sensitive to CPI during economic booms.
{"title":"Narrative monetary policy expectation in China","authors":"Dandan Zhu , Xiangdong Wang , Yifan Zhang","doi":"10.1016/j.chieco.2025.102568","DOIUrl":"10.1016/j.chieco.2025.102568","url":null,"abstract":"<div><div>This study introduces a novel narrative monetary policy expectation (<span><math><mrow><mi>M</mi><mi>P</mi><msup><mrow><mi>E</mi></mrow><mrow><mi>N</mi></mrow></msup></mrow></math></span>) index for China, constructed through the semantic analysis of more than one million economic news articles. While our <span><math><mrow><mi>M</mi><mi>P</mi><msup><mrow><mi>E</mi></mrow><mrow><mi>N</mi></mrow></msup></mrow></math></span> aligns with macro- and micro-survey-based monetary policy expectation indicators, it offers distinct advantages, including higher frequency, timeliness, and cost-effectiveness. Employing a time-varying parameter vector autoregression model, we find that the expectation of expansionary monetary policy is associated with economic downturns or inflation declines. Furthermore, monetary policy expectation is more responsive to GDP during downturns and more sensitive to CPI during economic booms.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102568"},"PeriodicalIF":5.5,"publicationDate":"2025-10-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145324543","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-10DOI: 10.1016/j.chieco.2025.102570
Peiting Dong , Xin Yao
Climate change has caused increasingly intense and frequent flooding, resulting in substantial economic loss worldwide in recent years. This study examines the impact of flood disasters on manufacturing firm productivity in China. Using the matched geographic accurate data with firm location and inundated areas, we find that flood disasters result in 9.3 % significant loss on firm TFP, particularly for small-size firms, non-state-owned firms, coastland firms and specific sector firms. Scale effect and innovation effect contribute to these outcomes. Moreover, government intervention can significantly influence firms' adaptation behaviors in the context of floods. All of the estimation results provide preparedness and adaptation support for both private and public sectors.
{"title":"Flood disasters, firm total factor productivity and adaptation behaviors","authors":"Peiting Dong , Xin Yao","doi":"10.1016/j.chieco.2025.102570","DOIUrl":"10.1016/j.chieco.2025.102570","url":null,"abstract":"<div><div>Climate change has caused increasingly intense and frequent flooding, resulting in substantial economic loss worldwide in recent years. This study examines the impact of flood disasters on manufacturing firm productivity in China. Using the matched geographic accurate data with firm location and inundated areas, we find that flood disasters result in 9.3 % significant loss on firm TFP, particularly for small-size firms, non-state-owned firms, coastland firms and specific sector firms. Scale effect and innovation effect contribute to these outcomes. Moreover, government intervention can significantly influence firms' adaptation behaviors in the context of floods. All of the estimation results provide preparedness and adaptation support for both private and public sectors.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102570"},"PeriodicalIF":5.5,"publicationDate":"2025-10-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145324544","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-08DOI: 10.1016/j.chieco.2025.102569
Shu Liu, Yonghao Xu
This paper explores the patterns of corporate recovery following natural disasters, with a specific focus on the government’s role in facilitating this process. Our results reveal that firms recover fast following disasters in China, with the effect being more pronounced among state-owned enterprises (SOEs). Mechanism analysis identifies the government’s direct and indirect capital injections as the primary drivers of this swift recovery, which help mitigate disruptions in corporate investments. Furthermore, this government intervention exhibits a nuanced nature. Corporate post-disaster recovery tends to be weaker (stronger) for SOEs (Non-SOEs) when local fiscal expenditure is stronger. Different government intervention methods exhibit a substitution effect. Overall, this paper underscores the noteworthy and intricate role of the government in stabilizing the economy.
{"title":"Recovering after natural disasters: A stabilizing role of the government","authors":"Shu Liu, Yonghao Xu","doi":"10.1016/j.chieco.2025.102569","DOIUrl":"10.1016/j.chieco.2025.102569","url":null,"abstract":"<div><div>This paper explores the patterns of corporate recovery following natural disasters, with a specific focus on the government’s role in facilitating this process. Our results reveal that firms recover fast following disasters in China, with the effect being more pronounced among state-owned enterprises (SOEs). Mechanism analysis identifies the government’s direct and indirect capital injections as the primary drivers of this swift recovery, which help mitigate disruptions in corporate investments. Furthermore, this government intervention exhibits a nuanced nature. Corporate post-disaster recovery tends to be weaker (stronger) for SOEs (Non-SOEs) when local fiscal expenditure is stronger. Different government intervention methods exhibit a substitution effect. Overall, this paper underscores the noteworthy and intricate role of the government in stabilizing the economy.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102569"},"PeriodicalIF":5.5,"publicationDate":"2025-10-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145264773","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-10-07DOI: 10.1016/j.chieco.2025.102566
Xueling Yan , Shule Yu , Xing Zheng
This study examines the impact of government subsidies on the automation decisions of small and medium-sized enterprises (SMEs) in China. We introduce a theoretical model to analyze how financing constraints affect the net benefits of automation and how subsidies allocated to SMEs with heterogeneous financing conditions can produce varying economic outcomes. Using data from the Enterprise Survey for Innovation and Entrepreneurship in China (ESIEC), we find that: 1) government subsidies significantly enhance automation adoption among SMEs; 2) this effect is primarily driven by the alleviation of financing constraints; and 3) however, subsidies directed towards SMEs with lower endowments may lead to inefficiencies. Our findings highlight the importance of subsidies in promoting technological advancements for financially constrained SMEs, especially in developing economies like China.
{"title":"Is government subsidy efficient? Evidence from SMEs' automation in China","authors":"Xueling Yan , Shule Yu , Xing Zheng","doi":"10.1016/j.chieco.2025.102566","DOIUrl":"10.1016/j.chieco.2025.102566","url":null,"abstract":"<div><div>This study examines the impact of government subsidies on the automation decisions of small and medium-sized enterprises (SMEs) in China. We introduce a theoretical model to analyze how financing constraints affect the net benefits of automation and how subsidies allocated to SMEs with heterogeneous financing conditions can produce varying economic outcomes. Using data from the Enterprise Survey for Innovation and Entrepreneurship in China (ESIEC), we find that: 1) government subsidies significantly enhance automation adoption among SMEs; 2) this effect is primarily driven by the alleviation of financing constraints; and 3) however, subsidies directed towards SMEs with lower endowments may lead to inefficiencies. Our findings highlight the importance of subsidies in promoting technological advancements for financially constrained SMEs, especially in developing economies like China.</div></div>","PeriodicalId":48285,"journal":{"name":"中国经济评论","volume":"94 ","pages":"Article 102566"},"PeriodicalIF":5.5,"publicationDate":"2025-10-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145264775","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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