Infrastructure investment and economic growth quality: empirical analysis of China’s regional development

Jiang, Zhou; Raza, Ali; Sui, Hongguang

doi:10.1080/00036846.2020.1863325

Cited by 29 publications

(21 citation statements)

References 20 publications

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“…Since the reform and expansion in 1978, China has achieved remarkable economic growth achievements which benefited greatly from the large scale of the government's leading investment and factor input [1][2][3]. However, extensive economic development, at the cost of high energy consumption and high emissions, has caused severe problems of resource exhaustion and environmental pollution, which have seriously affected the sustainable growth of China's economy, as shown in Figure 1.…”

Section: Introductionmentioning

confidence: 99%

A Blessing or a Curse? Exploring the Impact of Environmental Regulation on China’s Regional Green Development from the Perspective of Governance Transformation

Xian-pu

Lin

2022

IJERPH

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China’s rapid economic growth has caused serious problems, such as environmental pollution and resource exhaustion. Only by improving the green total factor productivity (GTFP) can China’s economic development get out of the dual dilemmas of environmental degradation and resources exhaustion. Although environmental regulation helps to improve China’s productivity, its impact on GTFP is still controversial and deserves careful investigation. In this context, this study adopts the global Malmquist-Luenberger productivity index to measure the GTFP change of China’s 30 provinces over the period of 2003 to 2017 and then it uses the fixed-effect dynamic panel model to investigate the impact of environmental regulation on GTFP from the perspective of governance transformation. The results show that: (1) there is a nonlinear U-shaped relationship between environmental regulation and GTFP, indicating that the Porter hypothesis is verified in China. More notably, the values of environmental regulation are still located on the left side of the U-shaped curve at present, which means that the promotional effect of environmental regulation on GTFP has not been realized fully. (2) The U-shaped relationship shows significant regional heterogeneity. The western region demonstrates the highest level of significance, followed by the eastern region. However, the U-shaped relationship is insignificant in the central region. (3) Governance transformation can not only significantly improve GTFP but it can also accelerate the realization of the Porter hypothesis by inspiring the innovative enthusiasm of enterprises, which means that governance transformation can contribute to the achievement of the improved effects of environmental regulation on GTFP. (4) R&D investment can significantly improve GTFP, where the impacts of trade openness and factor endowment were significantly negative and the influence of foreign direct investment was not significant. These conclusions provide a good reference point for optimizing the relationship between the government and the market, as well as promoting regional green and high-quality development in China.

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Section: Introductionmentioning

confidence: 99%

A Blessing or a Curse? Exploring the Impact of Environmental Regulation on China’s Regional Green Development from the Perspective of Governance Transformation

Xian-pu

Lin

2022

IJERPH

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“…Through the role of the aforementioned aspects, digital finance promotes the upgradation of industrial structure. The upgradation of industrial structure can optimize the combination of production factors, make labor and human capital flow to efficient production departments, directly improve the production efficiency of related industries, improve social labor productivity and total factor productivity (Sui, 2017;Zhou et al, 2021), and realize the improvement of economic growth efficiency. In addition, the upgradation of industrial structure can promote the supply-side structural reform, promote inclusive economic growth, narrow the income gap between urban and rural areas, balance regional economic development, and finally achieve the stability of economic growth.…”

Section: A Nexus Between Digital Finance and Quality Of Economic Growthmentioning

confidence: 99%

Does digital finance affect the quality of economic growth? Analysis based on Chinese city data

Ting-hua

Elahi

et al. 2022

Front. Environ. Sci.

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With the support of national policies and continuous emergence and innovation of emerging technologies, digital finance has developed rapidly in China. Can digital finance become a new driving force to promote quality development of economic growth? This study empirically examined the effect mechanisms of digital finance on the quality of economic growth. The study used the entropy weight and technique for order preference by similarity to an ideal solution method to construct a comprehensive index system of economic growth quality. From 2011 to 2019, the panel data of 272 cities in China were collected. The study found that digital finance can promote the quality of China’s economic growth in the long run; when digital finance development increases by one unit, the quality of economic growth will increase by 0.013%, and the effect is more significant in less developed regions. The digital finance coverage, depth of use, and degree of digitalization had a significant impact on the quality of economic growth. The mechanisms showed that digital finance can promote the quality of economic growth by promoting and upgrading the industrial structure. In addition, we used the threshold model to test the non-linear relationship between digital finance and the quality of economic growth. Furthermore, the results showed that when digital finance was at a low level, it had a negative effect on the quality of economic growth. As digital finance developed further, it had a significant effect on the quality of economic growth, and this effect gradually slowed down. Moreover, we found that digital finance played a more significant role in promoting the quality of economic growth in central and western regions and areas where traditional finance was underdeveloped. Based on this study, developing countries should strengthen the construction of digital infrastructure and give full play to the role of digital finance in improving the quality of economic growth, so as to promote sustainable and healthy economic development.

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“…China's financial system is dominated by bank loans, but there is a mismatch of financial resources. Enterprises' production and operation are short of capital sources and the efficiency of resource allocation is low for a long time, which is not conducive to sustainable growth of enterprises and seriously hinders the economic development process (Sui, 2017;Zhou et al, 2021). The emergence of trade credit financing can effectively make up for the deficiency of traditional finance.…”

Section: Literature Review and Research Hypothesesmentioning

confidence: 99%

Supply Chain Finance and the Sustainable Growth of Chinese Firms: The Moderating Effect of Digital Finance

Ting-hua

Liu

Elahi

et al. 2022

Front. Environ. Sci.

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Sustainable development is crucial to the survival and healthy development of enterprises, which is closely related to their financing situation. Supply chain finance is an effective way to improve and enhance the financing situation by easing financing constraints and reducing financing costs. As an important source of supply chain short-term financing, trade credit plays an important role in enterprise production and circulation. Taking Chinese listed companies from 2011 to 2020 as samples, this paper studied the impact of trade credit on sustainable growth and its internal mechanism. Furthermore, we analyzed the moderating effect of digital finance development on the influence of trade credit on sustainable growth. It is found that receiving trade credit benefited firms’ sustainable growth. Furthermore, study found that receiving trade credit has a greater positive impact on the sustainable growth of enterprises in regions with higher levels of financial development, high-tech industries, state-owned enterprises and small enterprises. Whereas, the provision of trade credit had an obvious inhibiting effect on the sustainable growth of enterprises in the regions with low level of financial development, non-high-tech industries, private enterprises and small enterprises. The results of the influencing mechanism showed that receiving trade credit promoted firm’s sustainable growth by “agency cost reducing effect,” while providing trade credit inhibited firm’s sustainable growth by “forcing effect.” In addition, the development of digital finance weakens the positive impact of trade credit financing on enterprises’ sustainable growth but strengthens the negative impact of providing trade credit on sustainable growth. From the perspective of sustainable growth, this paper explained the role of trade credit financing in alleviating the financing dilemma of enterprises, which is urgently needed by most emerging economies pursuing high-quality development. Therefore, in order to give full play to the role of trade credit financing, the government should actively create a good credit environment. At the same time, the government should vigorously develop digital finance to enhance its ability to serve the real economy.

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Infrastructure investment and economic growth quality: empirical analysis of China’s regional development

Cited by 29 publications

References 20 publications

A Blessing or a Curse? Exploring the Impact of Environmental Regulation on China’s Regional Green Development from the Perspective of Governance Transformation

A Blessing or a Curse? Exploring the Impact of Environmental Regulation on China’s Regional Green Development from the Perspective of Governance Transformation

Does digital finance affect the quality of economic growth? Analysis based on Chinese city data

Supply Chain Finance and the Sustainable Growth of Chinese Firms: The Moderating Effect of Digital Finance

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