Decentralization and firm innovation: Evidence from a natural experiment in China

Li, Shasha; Ji, Mianmian; Wang, Huijuan

doi:10.1016/j.econmod.2020.02.028

Cited by 8 publications

(1 citation statement)

References 49 publications

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“…The possible reason is that the eastern region tends to be economically developed and relatively well administered by the government, and enterprises have relatively higher market access and freedom, limiting the marginal impact of the reform of government functions on optimizing the business environment (Briguglio et al, 2019). In the central region, the reform of government functions can foster market competition and thus considerably enhance the business environment because market competition is somewhat insufficient due to the relatively underdeveloped economy and low level of government management (Li & Qi, 2023; Liu et al, 2021). Due to the remote location, the investment climate in the western region is relatively poor.…”

Section: Discussionmentioning

confidence: 99%

Evaluation and optimization of business environment based on sustainable development perspective: Exploring the role of the reform of government functions

Yin

Yuan

Zhou

2023

Sustainable Development

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The existing research on the business environment index system has a single viewpoint, which can hardly reflect the requirements of SDGs on the business environment. Few studies have focused on the “front end” factors determining the business environment. Based on panel data from 2011 to 2020, this study measures the business environment in 275 Chinese cities and uses the ArcGIS software and Natural Breaks (Jenks) to examine its spatiotemporal characteristics. The PSM‐DID model is utilized to examine the policy implications of the reform of government functions on the business environment. The findings demonstrate that China's urban business environment's total score has risen, and its geographic characteristics are “strong in the east and weak in the west.” Among the various sub‐dimensions of the business environment, the largest contribution is the infrastructure environment, followed by the rule of law environment. The reform of government functions can improve the business environment from the second year onward. Regional and city‐level heterogeneities exist in the effects of the reform of government functions on the business environment. In addition, informatization level, population density, and consumption level can optimize the business environment. This study provides a guide for accelerating the creation of a marketized, legalized, international, and sustainable business environment.

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Section: Discussionmentioning

confidence: 99%