Pub Date : 2026-02-01Epub Date: 2025-10-11DOI: 10.1016/j.jdeveco.2025.103654
Raoul van Maarseveen
Despite the rapid urbanization of the developing world, little remains known about how urban migration and residency affect childhood outcomes. Using census data for 14 African countries combined with an age-at-move design, I show that childhood exposure to cities significantly increases primary school completion and literacy rates, even among children from poor urban households. Better availability of schools and lower opportunity costs of education in cities appear to be important channels to explain the positive effects. The paper thus provides evidence of a novel channel through which urban migration can promote economic development.
{"title":"Urbanization and educational attainment: Evidence from Africa","authors":"Raoul van Maarseveen","doi":"10.1016/j.jdeveco.2025.103654","DOIUrl":"10.1016/j.jdeveco.2025.103654","url":null,"abstract":"<div><div>Despite the rapid urbanization of the developing world, little remains known about how urban migration and residency affect childhood outcomes. Using census data for 14 African countries combined with an age-at-move design, I show that childhood exposure to cities significantly increases primary school completion and literacy rates, even among children from poor urban households. Better availability of schools and lower opportunity costs of education in cities appear to be important channels to explain the positive effects. The paper thus provides evidence of a novel channel through which urban migration can promote economic development.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"179 ","pages":"Article 103654"},"PeriodicalIF":4.6,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145416635","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 : 2026-02-01Epub Date: 2025-09-10DOI: 10.1016/j.jdeveco.2025.103628
Jianyong Fan , Wei Tang , Feng Zhang
This paper examines the long-term impact of universities on local industrial development by leveraging a large-scale department relocation program in China during the 1950s, which reassigned more than two thirds of all university departments nationwide. While these relocations had limited influence under the planned economy, their impact became increasingly pronounced after China's economic liberalization in 1978. Our findings reveal substantial effects on total employment, firm numbers, and productivity in industries technologically related to the relocated departments. Importantly, these effects intensified over time, in sharp contrast to contemporaneous place-based policies that primarily redistributed physical capital. We highlight direct knowledge spillovers and the formation of industry-specific local talent pool as two underlying mechanisms driving the relocation effects.
{"title":"Persistent effects of universities on local industrial growth: Evidence from China's policy-induced college relocation in the 1950s","authors":"Jianyong Fan , Wei Tang , Feng Zhang","doi":"10.1016/j.jdeveco.2025.103628","DOIUrl":"10.1016/j.jdeveco.2025.103628","url":null,"abstract":"<div><div>This paper examines the long-term impact of universities on local industrial development by leveraging a large-scale department relocation program in China during the 1950s, which reassigned more than two thirds of all university departments nationwide. While these relocations had limited influence under the planned economy, their impact became increasingly pronounced after China's economic liberalization in 1978. Our findings reveal substantial effects on total employment, firm numbers, and productivity in industries technologically related to the relocated departments. Importantly, these effects intensified over time, in sharp contrast to contemporaneous place-based policies that primarily redistributed physical capital. We highlight direct knowledge spillovers and the formation of industry-specific local talent pool as two underlying mechanisms driving the relocation effects.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"179 ","pages":"Article 103628"},"PeriodicalIF":4.6,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145158868","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 : 2026-02-01Epub Date: 2025-08-29DOI: 10.1016/j.jdeveco.2025.103619
Xun Li , Congling Xia
This paper investigates the impact of dockless bike-sharing services (DBS), a key element of the sharing economy in China, on residents’ physical and mental well-being, as well as their social behaviors. Leveraging the phased introduction of DBS in Chinese cities between 2015 and 2020 and multiple data sets, we employ a staggered DID design with continuous treatment to evaluate the causal effects. We find that the introduction of DBS leads to a significant reduction in body mass index (BMI) and depression scores. These effects vary across individuals’ employment status, household physical capital and the geographic slope of cities. Additionally, we find that the entry of DBS increases the frequency and duration of exercise per week, while decreasing residents’ internet usage and online social interactions, indicating more active and offline social engagements. Our findings survive a battery of robustness checks. This study expands the discussion on the sharing economy beyond its economic and commercial impacts to highlight its social and health benefits, offering a fresh perspective on how the sharing economy contributes to sustainable urban development and the promotion of a healthy society.
{"title":"Pedaling to wellness: The impact of dockless bike-sharing services on physical and mental health in China","authors":"Xun Li , Congling Xia","doi":"10.1016/j.jdeveco.2025.103619","DOIUrl":"10.1016/j.jdeveco.2025.103619","url":null,"abstract":"<div><div>This paper investigates the impact of dockless bike-sharing services (DBS), a key element of the sharing economy in China, on residents’ physical and mental well-being, as well as their social behaviors. Leveraging the phased introduction of DBS in Chinese cities between 2015 and 2020 and multiple data sets, we employ a staggered DID design with continuous treatment to evaluate the causal effects. We find that the introduction of DBS leads to a significant reduction in body mass index (BMI) and depression scores. These effects vary across individuals’ employment status, household physical capital and the geographic slope of cities. Additionally, we find that the entry of DBS increases the frequency and duration of exercise per week, while decreasing residents’ internet usage and online social interactions, indicating more active and offline social engagements. Our findings survive a battery of robustness checks. This study expands the discussion on the sharing economy beyond its economic and commercial impacts to highlight its social and health benefits, offering a fresh perspective on how the sharing economy contributes to sustainable urban development and the promotion of a healthy society.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"179 ","pages":"Article 103619"},"PeriodicalIF":4.6,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145020826","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 : 2026-02-01Epub Date: 2025-09-30DOI: 10.1016/j.jdeveco.2025.103645
Anik Ashraf , Elizabeth Lyons
This paper investigates the complementarity between business training and timely access to financial capital for small and medium enterprises (SMEs) in Kenya. All participants in the business support program we study are offered training. One-third of participants are offered loans immediately after training (Concurrent Loan group), one-third are offered loans six weeks after training (Delayed Loan group), and the remaining third are offered loans after another four weeks (Control group). While a long time lag may reduce knowledge retention and application among SMEs, concurrent access to loans and associated business spending may divert the entrepreneurs’ attention away from improving business practices. We find evidence for the latter in both intention-to-treat and treatment-on-the-treated estimates. While SMEs in both Control and Delayed Loan groups improve their business practices, SMEs in the Concurrent Loan group who take loans do not improve their practices at all. Moreover, entrepreneurs who take loans spend less time on their businesses and experience declines in their business revenue.
{"title":"Complementing business training with access to finance: Evidence from SMEs in Kenya","authors":"Anik Ashraf , Elizabeth Lyons","doi":"10.1016/j.jdeveco.2025.103645","DOIUrl":"10.1016/j.jdeveco.2025.103645","url":null,"abstract":"<div><div>This paper investigates the complementarity between business training and timely access to financial capital for small and medium enterprises (SMEs) in Kenya. All participants in the business support program we study are offered training. One-third of participants are offered loans immediately after training (<em>Concurrent Loan</em> group), one-third are offered loans six weeks after training (<em>Delayed Loan</em> group), and the remaining third are offered loans after another four weeks (<em>Control</em> group). While a long time lag may reduce knowledge retention and application among SMEs, concurrent access to loans and associated business spending may divert the entrepreneurs’ attention away from improving business practices. We find evidence for the latter in both intention-to-treat and treatment-on-the-treated estimates. While SMEs in both Control and Delayed Loan groups improve their business practices, SMEs in the Concurrent Loan group who take loans do not improve their practices at all. Moreover, entrepreneurs who take loans spend less time on their businesses and experience declines in their business revenue.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"179 ","pages":"Article 103645"},"PeriodicalIF":4.6,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145267683","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 : 2026-02-01Epub Date: 2025-10-11DOI: 10.1016/j.jdeveco.2025.103656
Caio Pedro Castro , Raphael Corbi
We examine the short-term impact of income shocks on mortality in Brazil using administrative data and the quasi-random timing of disbursements from a federal wage allowance program for low-income workers. Exploiting variation in payment timing by birth month and a sharp eligibility cutoff, we find that mortality increases by 9.5% during the week of payment, particularly for deaths related to economic activity such as cardiovascular conditions and external causes. Effects are strongest in areas with low financial development and poor healthcare access, suggesting that limited consumption smoothing and delayed medical care amplify mortality risks. Our findings highlight how institutional constraints in developing countries shape the health consequences of predictable income transfers, with implications for the design and timing of social protection programs.
{"title":"Income shocks and mortality of low-wage workers: Evidence from wage allowances in Brazil","authors":"Caio Pedro Castro , Raphael Corbi","doi":"10.1016/j.jdeveco.2025.103656","DOIUrl":"10.1016/j.jdeveco.2025.103656","url":null,"abstract":"<div><div>We examine the short-term impact of income shocks on mortality in Brazil using administrative data and the quasi-random timing of disbursements from a federal wage allowance program for low-income workers. Exploiting variation in payment timing by birth month and a sharp eligibility cutoff, we find that mortality increases by 9.5% during the week of payment, particularly for deaths related to economic activity such as cardiovascular conditions and external causes. Effects are strongest in areas with low financial development and poor healthcare access, suggesting that limited consumption smoothing and delayed medical care amplify mortality risks. Our findings highlight how institutional constraints in developing countries shape the health consequences of predictable income transfers, with implications for the design and timing of social protection programs.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"179 ","pages":"Article 103656"},"PeriodicalIF":4.6,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145333325","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}
Human behaviors and innovations often spread through social networks, yet the mechanisms driving this diffusion — information sharing or persuasion — remain debated. Using a large-scale randomized controlled trial in Uttar Pradesh, India, we examine these dynamics while promoting a newly introduced savings commitment product. Our findings reveal persuasion as the dominant channel: villages where persuasion was incentivized experienced significantly higher product sign-up and take-up rates, even without corresponding increases in financial literacy or product knowledge. Conversely, providing information alone had minimal impact. The combined intervention of persuasion and information delivered the highest outcomes, highlighting their complementary roles. These results highlight the critical importance of persuasion in driving behavioral change and suggest that information dissemination alone may often be insufficient for effective adoption and diffusion.
{"title":"Diffusion in social networks: Experimental evidence on information sharing vs persuasion","authors":"Marcel Fafchamps , Asad Islam , Debayan Pakrashi , Denni Tommasi","doi":"10.1016/j.jdeveco.2025.103686","DOIUrl":"10.1016/j.jdeveco.2025.103686","url":null,"abstract":"<div><div>Human behaviors and innovations often spread through social networks, yet the mechanisms driving this diffusion — information sharing or persuasion — remain debated. Using a large-scale randomized controlled trial in Uttar Pradesh, India, we examine these dynamics while promoting a newly introduced savings commitment product. Our findings reveal persuasion as the dominant channel: villages where persuasion was incentivized experienced significantly higher product sign-up and take-up rates, even without corresponding increases in financial literacy or product knowledge. Conversely, providing information alone had minimal impact. The combined intervention of persuasion and information delivered the highest outcomes, highlighting their complementary roles. These results highlight the critical importance of persuasion in driving behavioral change and suggest that information dissemination alone may often be insufficient for effective adoption and diffusion.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"179 ","pages":"Article 103686"},"PeriodicalIF":4.6,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145623668","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 : 2026-02-01Epub Date: 2025-11-21DOI: 10.1016/j.jdeveco.2025.103655
Johanne Pelletier , Mira Korb , Solomon Alemu , Manex B. Yonis , Travis J. Lybbert , Matthieu Stigler
Recent advances in Earth observation and machine learning open new frontiers in impact evaluation that appear well-suited for agricultural settings. We probe the nuances and limitations of these promising methods using satellite-predicted maize yields to measure the impact of Ethiopia’s Direct Seed Marketing (DSM) program, which was rolled out after 2011 to enhance farmer access to improved seed varieties. Machine learning-generated outcomes inevitably introduce prediction error, which attenuates coefficients and understates standard errors in downstream causal analysis. We find positive effects of DSM on crop cut maize yields, but weaker effects when using (naive) predicted yields. We demonstrate how ground-truth data can be leveraged to diagnose and correct this bias using tools from the prediction-powered inference literature — albeit with additional assumptions about unobservable prediction errors. Our corrected estimates suggest substantial DSM impacts on satellite-predicted maize yields in all producing areas and years.
{"title":"Causal Inference with Predicted Outcomes: Correcting prediction error bias in satellite-based impact evaluation","authors":"Johanne Pelletier , Mira Korb , Solomon Alemu , Manex B. Yonis , Travis J. Lybbert , Matthieu Stigler","doi":"10.1016/j.jdeveco.2025.103655","DOIUrl":"10.1016/j.jdeveco.2025.103655","url":null,"abstract":"<div><div>Recent advances in Earth observation and machine learning open new frontiers in impact evaluation that appear well-suited for agricultural settings. We probe the nuances and limitations of these promising methods using satellite-predicted maize yields to measure the impact of Ethiopia’s Direct Seed Marketing (DSM) program, which was rolled out after 2011 to enhance farmer access to improved seed varieties. Machine learning-generated outcomes inevitably introduce prediction error, which attenuates coefficients and understates standard errors in downstream causal analysis. We find positive effects of DSM on crop cut maize yields, but weaker effects when using (naive) predicted yields. We demonstrate how ground-truth data can be leveraged to diagnose and correct this bias using tools from the prediction-powered inference literature — albeit with additional assumptions about unobservable prediction errors. Our corrected estimates suggest substantial DSM impacts on satellite-predicted maize yields in all producing areas and years.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"179 ","pages":"Article 103655"},"PeriodicalIF":4.6,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145623671","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 : 2026-02-01Epub Date: 2025-11-19DOI: 10.1016/j.jdeveco.2025.103681
Stepan Gordeev
In many of the poorest countries, agriculture is unproductive and subsistence farming is widespread. I propose nutrition demand as a mechanism that drives the production decisions of subsistence farmers and ultimately contributes to low aggregate agricultural productivity. I explore this mechanism in a model of farm-operating households facing explicit caloric needs and costly domestic trade, and test the model’s predictions on Malawian household-level data. In the model and in the data, the smallest farmers focus their consumption on obtaining calories and specialize their production in unsold staple crops; medium farmers diversify both their diet and their subsistence production; the largest farmers shift consumption to purchased goods by producing and selling marketable farm products. I quantify the aggregate implications of this farm-level product choice using the model. It suggests that lowering trade frictions enough for the average share of output sold by farmers to reach even 50% would make the country’s agricultural sector 47% more productive. Half of this increase is caused by the mechanically reduced erosion of output, and the other half by a better alignment of individual farmers’ product choice with their comparative advantage rather than their family’s nutritional needs or food preferences.
{"title":"Nutrition demand, subsistence farming, and agricultural productivity","authors":"Stepan Gordeev","doi":"10.1016/j.jdeveco.2025.103681","DOIUrl":"10.1016/j.jdeveco.2025.103681","url":null,"abstract":"<div><div>In many of the poorest countries, agriculture is unproductive and subsistence farming is widespread. I propose nutrition demand as a mechanism that drives the production decisions of subsistence farmers and ultimately contributes to low aggregate agricultural productivity. I explore this mechanism in a model of farm-operating households facing explicit caloric needs and costly domestic trade, and test the model’s predictions on Malawian household-level data. In the model and in the data, the smallest farmers focus their consumption on obtaining calories and specialize their production in unsold staple crops; medium farmers diversify both their diet and their subsistence production; the largest farmers shift consumption to purchased goods by producing and selling marketable farm products. I quantify the aggregate implications of this farm-level product choice using the model. It suggests that lowering trade frictions enough for the average share of output sold by farmers to reach even 50% would make the country’s agricultural sector 47% more productive. Half of this increase is caused by the mechanically reduced erosion of output, and the other half by a better alignment of individual farmers’ product choice with their comparative advantage rather than their family’s nutritional needs or food preferences.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"179 ","pages":"Article 103681"},"PeriodicalIF":4.6,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145623674","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 : 2026-02-01Epub Date: 2025-09-02DOI: 10.1016/j.jdeveco.2025.103625
Zehui Li , Haoye Liao , Sen Ma , Junjie Qiu , Sen Xue
We leverage exogenous mixed-dormitory room assignments between Hong Kong/Macau (HM) students and mainland Chinese students at a Chinese university to investigate intergroup contact's effects on national identity. We find that mixed-room experience significantly enhances the national identity with China for both HM and mainland students. The heterogeneous analysis suggests that for HM students, the national identity rises more when paired with culturally proximate mainland peers (Cantonese speakers), and for mainland students, their national identity is bolstered when living with relatively low economic status HM peers. Additionally, mixed-room experience increases the mainland Chinese media usage and the preference for working in the mainland of China after graduation for HM students.
{"title":"Inter-group contact and national identity: Evidence from Hong Kong and Macau students in the mainland of China","authors":"Zehui Li , Haoye Liao , Sen Ma , Junjie Qiu , Sen Xue","doi":"10.1016/j.jdeveco.2025.103625","DOIUrl":"10.1016/j.jdeveco.2025.103625","url":null,"abstract":"<div><div>We leverage exogenous mixed-dormitory room assignments between Hong Kong/Macau (HM) students and mainland Chinese students at a Chinese university to investigate intergroup contact's effects on national identity. We find that mixed-room experience significantly enhances the national identity with China for both HM and mainland students. The heterogeneous analysis suggests that for HM students, the national identity rises more when paired with culturally proximate mainland peers (Cantonese speakers), and for mainland students, their national identity is bolstered when living with relatively low economic status HM peers. Additionally, mixed-room experience increases the mainland Chinese media usage and the preference for working in the mainland of China after graduation for HM students.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"179 ","pages":"Article 103625"},"PeriodicalIF":4.6,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145050013","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 : 2026-02-01Epub Date: 2025-09-01DOI: 10.1016/j.jdeveco.2025.103616
Lili Lian , Jingyi Zhang
In China, state owners make minority equity investments in private firms. We study the allocative implications of such government investments using a two-sector DSGE model with financial friction and idiosyncratic productivities. In our model, private owners are more productive than state owners but face tighter financial constraints. Equity investment by a state owner alleviates the private owner’s financial constraint but dampens its own productivity, consistent with Chinese firm-level data. Under this setup, only private owners with sufficiently high productivity accept such investment, while only state owners with sufficiently low productivity make such investment. As a result, expansion of such government investment improves capital allocation within each sector and across sectors. Our analysis shows that financial liberalizations, including liberalizing interest-rate controls and reducing the loan-to-value gap between sectors, stimulate private owners’ demand for such government investment but discourage state owners from making it, thus generating an ambiguous effect on aggregate productivity.
{"title":"Allocative implications of government investment in private sector","authors":"Lili Lian , Jingyi Zhang","doi":"10.1016/j.jdeveco.2025.103616","DOIUrl":"10.1016/j.jdeveco.2025.103616","url":null,"abstract":"<div><div>In China, state owners make minority equity investments in private firms. We study the allocative implications of such government investments using a two-sector DSGE model with financial friction and idiosyncratic productivities. In our model, private owners are more productive than state owners but face tighter financial constraints. Equity investment by a state owner alleviates the private owner’s financial constraint but dampens its own productivity, consistent with Chinese firm-level data. Under this setup, only private owners with sufficiently high productivity accept such investment, while only state owners with sufficiently low productivity make such investment. As a result, expansion of such government investment improves capital allocation within each sector and across sectors. Our analysis shows that financial liberalizations, including liberalizing interest-rate controls and reducing the loan-to-value gap between sectors, stimulate private owners’ demand for such government investment but discourage state owners from making it, thus generating an ambiguous effect on aggregate productivity.</div></div>","PeriodicalId":48418,"journal":{"name":"Journal of Development Economics","volume":"179 ","pages":"Article 103616"},"PeriodicalIF":4.6,"publicationDate":"2026-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145050016","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}
扫码关注我们
求助内容：
应助结果提醒方式：
京公网安备 11010802042870号