Pub Date : 2026-01-27DOI: 10.1016/j.eap.2026.01.049
Xi Tan , Hanjin Xie , Jiahui Cheng
This paper examines the causal relationship between trade liberalization and technological innovation using the case of China’s Free Trade Zones (FTZs). Based on the natural experiment of the staggered establishment of FTZs across China, we apply a DID-based causal inference framework and estimate a significant positive treatment effect on the scale and quality of urban technological innovation. This result is supported by a range of estimators and robustness checks. We show that knowledge flows measured by technology transfer and collaborative innovation and institutional optimization measured by strengthened intellectual property protection and relaxed market entry barriers significantly drive post-FTZ growth in urban technological innovation performance. Moreover, the depth of reform rather than the number of zones established or the level of government attention to science and technology explains the heterogeneity in innovation performance across FTZ cities. We also reveal the pivotal role of FTZs in promoting both leading-edge technological innovations and breakthroughs in new technological domains. This study provides new empirical evidence on the relationship between trade liberalization and technological innovation and highlights the importance of trade liberalization reforms for developing countries.
{"title":"Revisiting the role of trade liberalization in technological innovation: Evidence from free trade zones in China","authors":"Xi Tan , Hanjin Xie , Jiahui Cheng","doi":"10.1016/j.eap.2026.01.049","DOIUrl":"10.1016/j.eap.2026.01.049","url":null,"abstract":"<div><div>This paper examines the causal relationship between trade liberalization and technological innovation using the case of China’s Free Trade Zones (FTZs). Based on the natural experiment of the staggered establishment of FTZs across China, we apply a DID-based causal inference framework and estimate a significant positive treatment effect on the scale and quality of urban technological innovation. This result is supported by a range of estimators and robustness checks. We show that knowledge flows measured by technology transfer and collaborative innovation and institutional optimization measured by strengthened intellectual property protection and relaxed market entry barriers significantly drive post-FTZ growth in urban technological innovation performance. Moreover, the depth of reform rather than the number of zones established or the level of government attention to science and technology explains the heterogeneity in innovation performance across FTZ cities. We also reveal the pivotal role of FTZs in promoting both leading-edge technological innovations and breakthroughs in new technological domains. This study provides new empirical evidence on the relationship between trade liberalization and technological innovation and highlights the importance of trade liberalization reforms for developing countries.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"90 ","pages":"Pages 713-744"},"PeriodicalIF":8.7,"publicationDate":"2026-01-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146079406","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-25DOI: 10.1016/j.eap.2026.01.053
Xiaolin Dong, Shengming Zhu, Hao Qi
This study investigates the evolving relevance of geographic banking advantages in corporate innovation and examines how financial technology (FinTech) disrupts traditional spatial dependencies in innovation financing. Using a panel of Chinese listed firms from 2011 to 2021, we find that bank proximity remains positively associated with innovation performance, yet the development of FinTech significantly weakens this relationship. This attenuation effect is more pronounced for underlying FinTech technologies and for proximity to small banks. The plausible mechanism is that FinTech mitigates financing constraints by reducing information asymmetries associated with lending distance, which in turn fosters innovation through increased investment in human capital, innovation-supporting infrastructure, and R&D expenditure. Heterogeneity tests further suggest that FinTech’s innovation-enhancing effect is stronger for small firms, startups, and firms in regions with underdeveloped transportation or rugged terrain. Our findings underscore the transformative potential of FinTech in overcoming geographic barriers and fostering a more efficient and inclusive allocation of innovation capital.
{"title":"FinTech, bank proximity, and corporate innovation: Evidence from China","authors":"Xiaolin Dong, Shengming Zhu, Hao Qi","doi":"10.1016/j.eap.2026.01.053","DOIUrl":"10.1016/j.eap.2026.01.053","url":null,"abstract":"<div><div>This study investigates the evolving relevance of geographic banking advantages in corporate innovation and examines how financial technology (FinTech) disrupts traditional spatial dependencies in innovation financing. Using a panel of Chinese listed firms from 2011 to 2021, we find that bank proximity remains positively associated with innovation performance, yet the development of FinTech significantly weakens this relationship. This attenuation effect is more pronounced for underlying FinTech technologies and for proximity to small banks. The plausible mechanism is that FinTech mitigates financing constraints by reducing information asymmetries associated with lending distance, which in turn fosters innovation through increased investment in human capital, innovation-supporting infrastructure, and R&D expenditure. Heterogeneity tests further suggest that FinTech’s innovation-enhancing effect is stronger for small firms, startups, and firms in regions with underdeveloped transportation or rugged terrain. Our findings underscore the transformative potential of FinTech in overcoming geographic barriers and fostering a more efficient and inclusive allocation of innovation capital.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"90 ","pages":"Pages 632-649"},"PeriodicalIF":8.7,"publicationDate":"2026-01-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146079487","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-25DOI: 10.1016/j.eap.2026.01.051
Zengdong Cao
This paper develops a theoretical model to examine the environmental effects of cloud computing adoption and decomposes its impact into three channels: scale effect, structural effect, and technological effect. Using data on Chinese A-share listed manufacturing firms, we empirically test the model’s predictions. The results show that cloud adoption increases pollution emissions by 8% through the scale effect, while it reduces emissions by 6.5% and 2.9% through the structural and technological effects, respectively, by facilitating cleaner energy use and green technological innovation. Overall, these offsetting forces imply a net 1.4% reduction in pollution emissions following cloud adoption. This paper provides the first systematic decomposition of the environmental effects of cloud computing as a concrete manifestation of data elements in production. By explicitly quantifying both emission-increasing and emission-reducing mechanisms, this paper helps reconcile mixed findings in the digitalization–environment literature and offers new micro-level evidence on the role of data as a production factor in green development.
{"title":"Cloud computing adoption and pollution emissions: Evidence from Chinese manufacturing firms","authors":"Zengdong Cao","doi":"10.1016/j.eap.2026.01.051","DOIUrl":"10.1016/j.eap.2026.01.051","url":null,"abstract":"<div><div>This paper develops a theoretical model to examine the environmental effects of cloud computing adoption and decomposes its impact into three channels: scale effect, structural effect, and technological effect. Using data on Chinese A-share listed manufacturing firms, we empirically test the model’s predictions. The results show that cloud adoption increases pollution emissions by 8% through the scale effect, while it reduces emissions by 6.5% and 2.9% through the structural and technological effects, respectively, by facilitating cleaner energy use and green technological innovation. Overall, these offsetting forces imply a net 1.4% reduction in pollution emissions following cloud adoption. This paper provides the first systematic decomposition of the environmental effects of cloud computing as a concrete manifestation of data elements in production. By explicitly quantifying both emission-increasing and emission-reducing mechanisms, this paper helps reconcile mixed findings in the digitalization–environment literature and offers new micro-level evidence on the role of data as a production factor in green development.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"90 ","pages":"Pages 576-599"},"PeriodicalIF":8.7,"publicationDate":"2026-01-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146079405","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Improvements in transportation infrastructure are a key factor in promoting educational equity. This paper is the first to use nationally representative survey data from China to analyze the effect of exposure to road infrastructure expansion during early life stages on educational attainment. Our findings reveal that such expansions raise the years of schooling by 0.539 years. Women, rural residents, and individuals with less parental education or limited geographical accessibility benefit more from the positive effects of road infrastructure expansion on educational attainment. Additionally, our analysis explores the mechanisms underlying these relationships, such as improvements in parental time and monetary investments. We discuss the practical implications of our findings, emphasizing how expanding road transportation infrastructure can significantly enhance educational outcomes, especially in developing countries.
{"title":"Impact of early-life exposure of children to expanded road infrastructure on long-term educational attainment: New evidence from China","authors":"Xin Meng , Yanni Yu , Phuong T.M. Tran , Rajasekhar Balasubramanian","doi":"10.1016/j.eap.2026.01.050","DOIUrl":"10.1016/j.eap.2026.01.050","url":null,"abstract":"<div><div>Improvements in transportation infrastructure are a key factor in promoting educational equity. This paper is the first to use nationally representative survey data from China to analyze the effect of exposure to road infrastructure expansion during early life stages on educational attainment. Our findings reveal that such expansions raise the years of schooling by 0.539 years. Women, rural residents, and individuals with less parental education or limited geographical accessibility benefit more from the positive effects of road infrastructure expansion on educational attainment. Additionally, our analysis explores the mechanisms underlying these relationships, such as improvements in parental time and monetary investments. We discuss the practical implications of our findings, emphasizing how expanding road transportation infrastructure can significantly enhance educational outcomes, especially in developing countries.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"90 ","pages":"Pages 698-712"},"PeriodicalIF":8.7,"publicationDate":"2026-01-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146079399","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-21DOI: 10.1016/j.eap.2026.01.038
Yucheng Wu, Dejun Wu, Xuechao Li
This study empirically investigates the influence of female rookie CEOs’ career concerns on corporate green innovation. Using a sample of 39,387 firm-year observations from Chinese A-share listed firms from 2007 to 2023, we find that career concerns lead female rookie CEOs to diminish green innovation, an effect concentrated solely in substantive innovation (i.e., green invention patents). Our findings remain robust to a series of checks. The motivation tests suggest that female rookie CEOs reduce substantive green innovation, which is characterized by higher risks and costs, to maintain short-term performance stability and thereby enhance their job security. Further analysis shows that this negative effect is more pronounced in firms with younger CEOs and those facing higher financing constraints. By integrating gender differences into research on CEO career concerns and focusing on targeted green innovation initiatives, our study contributes to the literature on both CEO career concerns and the determinants of corporate sustainability. Moreover, our findings offer practical insights for promoting green innovation and provide valuable implications for environmental regulation policy.
{"title":"Female rookie CEO and green innovation","authors":"Yucheng Wu, Dejun Wu, Xuechao Li","doi":"10.1016/j.eap.2026.01.038","DOIUrl":"10.1016/j.eap.2026.01.038","url":null,"abstract":"<div><div>This study empirically investigates the influence of female rookie CEOs’ career concerns on corporate green innovation. Using a sample of 39,387 firm-year observations from Chinese A-share listed firms from 2007 to 2023, we find that career concerns lead female rookie CEOs to diminish green innovation, an effect concentrated solely in substantive innovation (i.e., green invention patents). Our findings remain robust to a series of checks. The motivation tests suggest that female rookie CEOs reduce substantive green innovation, which is characterized by higher risks and costs, to maintain short-term performance stability and thereby enhance their job security. Further analysis shows that this negative effect is more pronounced in firms with younger CEOs and those facing higher financing constraints. By integrating gender differences into research on CEO career concerns and focusing on targeted green innovation initiatives, our study contributes to the literature on both CEO career concerns and the determinants of corporate sustainability. Moreover, our findings offer practical insights for promoting green innovation and provide valuable implications for environmental regulation policy.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"90 ","pages":"Pages 405-416"},"PeriodicalIF":8.7,"publicationDate":"2026-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146079407","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-21DOI: 10.1016/j.eap.2026.01.044
Zhilong Zhao , Shan Wang , Xun Wang , Siming Yu
As global warming intensifies, the economic consequences of climate risk have become a central concern for the international community. Using financial data from Chinese A-share listed firms during 2009–2022, this paper investigates the impact of climate risk on corporate ESG quality. We find that higher climate risk significantly improves firms’ ESG quality. Heterogeneity analyses show that this effect is more pronounced for non-state-owned firms, non-high-pollution firms, and firms operating under unstable policy environments. Moreover, the effect becomes stronger following the introduction of major climate policies. Further analyses suggest that climate risk enhances ESG quality through internal green technology innovation and external media supervision. This study enriches the literature on the economic consequences of climate risk and provides practical implications for firms in mitigating and adapting to climate-related challenges.
{"title":"Does climate risk affect corporate ESG quality?—Evidence from textual analysis","authors":"Zhilong Zhao , Shan Wang , Xun Wang , Siming Yu","doi":"10.1016/j.eap.2026.01.044","DOIUrl":"10.1016/j.eap.2026.01.044","url":null,"abstract":"<div><div>As global warming intensifies, the economic consequences of climate risk have become a central concern for the international community. Using financial data from Chinese A-share listed firms during 2009–2022, this paper investigates the impact of climate risk on corporate ESG quality. We find that higher climate risk significantly improves firms’ ESG quality. Heterogeneity analyses show that this effect is more pronounced for non-state-owned firms, non-high-pollution firms, and firms operating under unstable policy environments. Moreover, the effect becomes stronger following the introduction of major climate policies. Further analyses suggest that climate risk enhances ESG quality through internal green technology innovation and external media supervision. This study enriches the literature on the economic consequences of climate risk and provides practical implications for firms in mitigating and adapting to climate-related challenges.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"90 ","pages":"Pages 490-503"},"PeriodicalIF":8.7,"publicationDate":"2026-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146079473","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-21DOI: 10.1016/j.eap.2026.01.042
Huijie Chen , Yixin Liu , Haiyang He
As globalization and market competition intensify, the role of nationalism in corporate marketing has gained increasing attention. This study examines whether and how corporate nationalism influences the economic value of firms in China’s new energy vehicle (NEV) sector. Using data from A-share listed companies in China’s new energy vehicle (NEV) sector between 2010 and 2023, we employ a two-way fixed-effects panel data model to assess the effects and mechanisms of nationalism, supported by robustness tests and heterogeneous analyses. The empirical findings demonstrate that nationalism significantly enhances corporate economic value. Specifically, nationalism increases media attention, strengthens investor confidence, and expands market share, leading to higher market value. The heterogeneous analysis further reveals that the impact of nationalism varies depending on firm characteristics, with moderating effects related to international market involvement, executive backgrounds, and geographical location. These findings provide practical guidance for policymakers and managers seeking to leverage nationalist communication strategies while maintaining stable market expectations.
{"title":"The economic value creation effect of corporate nationalism: Evidence from China's new energy vehicle industry","authors":"Huijie Chen , Yixin Liu , Haiyang He","doi":"10.1016/j.eap.2026.01.042","DOIUrl":"10.1016/j.eap.2026.01.042","url":null,"abstract":"<div><div>As globalization and market competition intensify, the role of nationalism in corporate marketing has gained increasing attention. This study examines whether and how corporate nationalism influences the economic value of firms in China’s new energy vehicle (NEV) sector. Using data from A-share listed companies in China’s new energy vehicle (NEV) sector between 2010 and 2023, we employ a two-way fixed-effects panel data model to assess the effects and mechanisms of nationalism, supported by robustness tests and heterogeneous analyses. The empirical findings demonstrate that nationalism significantly enhances corporate economic value. Specifically, nationalism increases media attention, strengthens investor confidence, and expands market share, leading to higher market value. The heterogeneous analysis further reveals that the impact of nationalism varies depending on firm characteristics, with moderating effects related to international market involvement, executive backgrounds, and geographical location. These findings provide practical guidance for policymakers and managers seeking to leverage nationalist communication strategies while maintaining stable market expectations.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"90 ","pages":"Pages 600-613"},"PeriodicalIF":8.7,"publicationDate":"2026-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146079470","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-21DOI: 10.1016/j.eap.2026.01.045
Hongliang Li , Dingrong Yang , Ning Sun , Zeren Zhang
Enhancing the industrial chain resilience through digital technology is an important pathway to accelerate modern industrial construction in China. This study considers the “Broadband China” pilot (BCP) as an exogenous shock, and conducts time-varying DID model to evaluate the effect of digital infrastructure construction (DIC) on industrial chain resilience. The result indicates that BCP significantly enhances industrial chain resilience. Mechanism test shows that BCP can enhance industrial chain resilience via informatization-improved and innovation-driven effect. Moreover, BCP generates spatial spillover effects, boosting industrial chain resilience both locally and neighboring cities. This study reveals how the development of digital infrastructure shapes the way industrial chains respond to external disruptions, offering evidence for promoting industrial optimization and upgrading.
{"title":"Can digital infrastructure construction enhance industrial chain resilience? Evidence from China","authors":"Hongliang Li , Dingrong Yang , Ning Sun , Zeren Zhang","doi":"10.1016/j.eap.2026.01.045","DOIUrl":"10.1016/j.eap.2026.01.045","url":null,"abstract":"<div><div>Enhancing the industrial chain resilience through digital technology is an important pathway to accelerate modern industrial construction in China. This study considers the “Broadband China” pilot (BCP) as an exogenous shock, and conducts time-varying DID model to evaluate the effect of digital infrastructure construction (DIC) on industrial chain resilience. The result indicates that BCP significantly enhances industrial chain resilience. Mechanism test shows that BCP can enhance industrial chain resilience via informatization-improved and innovation-driven effect. Moreover, BCP generates spatial spillover effects, boosting industrial chain resilience both locally and neighboring cities. This study reveals how the development of digital infrastructure shapes the way industrial chains respond to external disruptions, offering evidence for promoting industrial optimization and upgrading.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"90 ","pages":"Pages 614-631"},"PeriodicalIF":8.7,"publicationDate":"2026-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146079404","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-21DOI: 10.1016/j.eap.2026.01.040
Hewen Gao , Fei Li , Jinhua Zhang , Weilin Shi , Yu Sun
Tackling climate change requires profound industrial decarbonization, where digital infrastructure is envisioned as a key enabler. However, the micro-foundations and meso‑level channels through which it operates remain underexplored. Utilizing a unique dataset of 985 Chinese listed industrial firms (2014–2022) matched with city-level data, this study investigates how digital infrastructure affects corporate carbon emission intensity. We propose and test a dual-channel mechanism: enhancing firms' green innovation capacity and fostering industry-wide digital coordination efficiency. Our extended timeframe captures firm behavior before and after the announcement of China's 'Dual Carbon' goals in 2020, offering a unique quasi-experimental setting to examine the policy's reinforcing effect. Our findings, robust to instrumental variable and quasi-natural experiment approaches, confirm that digital infrastructure significantly reduces emission intensity. The mediation analysis validates that both corporate green innovation and industry digital coordination are significant transmission channels. Furthermore, we identify a negative moderating effect of city size and notable heterogeneity across firm types and industries—most notably, a potential 'rebound effect' in technology-intensive sectors. This study makes three primary contributions. First, by shifting the analytical focus from the provincial to the city level and establishing a direct link between urban digital infrastructure and firm-level conduct, we provide more precise and granular micro-evidence that mitigates potential aggregation biases. Second, we theoretically elaborate and empirically test a dual-channel mechanism, incorporating both the micro-foundation of corporate green innovation and the meso‑level channel of industry digital coordination, thereby systematically unpacking the 'black box' of digital decarbonization. Third, methodologically, we pioneer the measurement of industry digital coordination efficiency using input-output tables, offering a novel and replicable approach for future multi-level research on digital economy externalities.
{"title":"Digital infrastructure and industrial decarbonization: evidence from the dual perspectives of green innovation and digital coordination in China","authors":"Hewen Gao , Fei Li , Jinhua Zhang , Weilin Shi , Yu Sun","doi":"10.1016/j.eap.2026.01.040","DOIUrl":"10.1016/j.eap.2026.01.040","url":null,"abstract":"<div><div>Tackling climate change requires profound industrial decarbonization, where digital infrastructure is envisioned as a key enabler. However, the micro-foundations and meso‑level channels through which it operates remain underexplored. Utilizing a unique dataset of 985 Chinese listed industrial firms (2014–2022) matched with city-level data, this study investigates how digital infrastructure affects corporate carbon emission intensity. We propose and test a dual-channel mechanism: enhancing firms' green innovation capacity and fostering industry-wide digital coordination efficiency. Our extended timeframe captures firm behavior before and after the announcement of China's 'Dual Carbon' goals in 2020, offering a unique quasi-experimental setting to examine the policy's reinforcing effect. Our findings, robust to instrumental variable and quasi-natural experiment approaches, confirm that digital infrastructure significantly reduces emission intensity. The mediation analysis validates that both corporate green innovation and industry digital coordination are significant transmission channels. Furthermore, we identify a negative moderating effect of city size and notable heterogeneity across firm types and industries—most notably, a potential 'rebound effect' in technology-intensive sectors. This study makes three primary contributions. First, by shifting the analytical focus from the provincial to the city level and establishing a direct link between urban digital infrastructure and firm-level conduct, we provide more precise and granular micro-evidence that mitigates potential aggregation biases. Second, we theoretically elaborate and empirically test a dual-channel mechanism, incorporating both the micro-foundation of corporate green innovation and the meso‑level channel of industry digital coordination, thereby systematically unpacking the 'black box' of digital decarbonization. Third, methodologically, we pioneer the measurement of industry digital coordination efficiency using input-output tables, offering a novel and replicable approach for future multi-level research on digital economy externalities.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"90 ","pages":"Pages 343-357"},"PeriodicalIF":8.7,"publicationDate":"2026-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146025363","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2026-01-21DOI: 10.1016/j.eap.2026.01.041
Chenze Zhao , Chibo Chen , Zhisheng Ma
Rural digital economic transformation has become an important component in promoting agricultural modernization and rural revitalization. This paper focuses on the impact of agricultural subsidy policy reform on rural digital economic transformation in China. Using panel data from prefecture-level cities across China, the study applies the difference-in-differences (DID) model to explore the causal effects of agricultural subsidy policy reform on rural digital economic transformation. The results show that agricultural subsidy policy reform significantly promotes rural digital economic transformation, and this conclusion holds after a series of robustness checks. Mechanism analysis reveals that agricultural subsidy policy reform drives rural digital economic transformation through promoting agricultural mechanization, fostering new agricultural business entities, and reducing the urban-rural income gap. Furthermore, the study finds significant heterogeneity in the effects of agricultural subsidy policy reform. The results show that the positive effects of the policy are relatively stronger in coastal cities and non-transport hub cities, while no significant differences are observed between cities of different sizes or those classified as old industrial base cities. This study provides theoretical insights for policymakers and serves as a basis for using agricultural subsidy policies to promote the comprehensive digitalization of rural economies.
{"title":"Agricultural subsidy policy reform and rural digital economic transformation: Evidence from China","authors":"Chenze Zhao , Chibo Chen , Zhisheng Ma","doi":"10.1016/j.eap.2026.01.041","DOIUrl":"10.1016/j.eap.2026.01.041","url":null,"abstract":"<div><div>Rural digital economic transformation has become an important component in promoting agricultural modernization and rural revitalization. This paper focuses on the impact of agricultural subsidy policy reform on rural digital economic transformation in China. Using panel data from prefecture-level cities across China, the study applies the difference-in-differences (DID) model to explore the causal effects of agricultural subsidy policy reform on rural digital economic transformation. The results show that agricultural subsidy policy reform significantly promotes rural digital economic transformation, and this conclusion holds after a series of robustness checks. Mechanism analysis reveals that agricultural subsidy policy reform drives rural digital economic transformation through promoting agricultural mechanization, fostering new agricultural business entities, and reducing the urban-rural income gap. Furthermore, the study finds significant heterogeneity in the effects of agricultural subsidy policy reform. The results show that the positive effects of the policy are relatively stronger in coastal cities and non-transport hub cities, while no significant differences are observed between cities of different sizes or those classified as old industrial base cities. This study provides theoretical insights for policymakers and serves as a basis for using agricultural subsidy policies to promote the comprehensive digitalization of rural economies.</div></div>","PeriodicalId":54200,"journal":{"name":"Economic Analysis and Policy","volume":"90 ","pages":"Pages 681-697"},"PeriodicalIF":8.7,"publicationDate":"2026-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"146079398","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"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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