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Development zones and green innovation: Evidence from Chinese listed companies

Author

Listed:
  • Xie, Zhong
  • Lu, Wenling
  • Yu, Jing
  • Wu, Yanrui
  • Liu, Qing

Abstract

This paper applies data of listed Chinese companies from 2000 to 2017 and a time-varying DID model to examine the effect of the National Development Zones (NDZs) and Provincial Development Zones (PDZs) on green innovation. First, it is found that NDZs can significantly boost companies' green-innovation, while PDZs can slightly inhibit the quality of green innovation. These results still apply even after a series of robustness checks. Second, supply chain finance, environmental regulation, and green finance are three mechanisms through which NDZs exert a beneficial influence on green innovation. In contrast, the negative effects of PDZs stem primarily from lax environmental regulations. Finally, heterogeneity analysis shows that the establishment of NDZs has a significant effect on promoting green innovation in non-resource-based urban enterprises, non-state-owned enterprises, and small-scale enterprises.

Suggested Citation

  • Xie, Zhong & Lu, Wenling & Yu, Jing & Wu, Yanrui & Liu, Qing, 2022. "Development zones and green innovation: Evidence from Chinese listed companies," China Economic Review, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:chieco:v:76:y:2022:i:c:s1043951x22001328
    DOI: 10.1016/j.chieco.2022.101874
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    Cited by:

    1. Jinguo Rao & Xiaosong Zhang & Duanqiang Zhai, 2024. "Does the Upgrading of Development Zones Improve Land Use Efficiency under the Net-Zero Carbon City Goal? Prefectural-Level Evidence from Quasi-Natural Experiments in China," Land, MDPI, vol. 13(8), pages 1-22, August.
    2. Di Wang & Wei Dou, 2024. "Investigation on how carbon markets and digital transformation affect green innovation: evidence from Chinese listed companies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 22775-22800, September.
    3. Dian, Jie & Song, Tian & Li, Shenglan, 2024. "Facilitating or inhibiting? Spatial effects of the digital economy affecting urban green technology innovation," Energy Economics, Elsevier, vol. 129(C).
    4. Wang, Lina & Cao, Li, 2024. "Analyst attention and corporate green innovation," Finance Research Letters, Elsevier, vol. 60(C).
    5. Zhang, Huiming & Wan, Dayu & Sun, Chuanwang & Wu, Kai & Lin, Caixia, 2023. "Does political inspection promote corporate green innovation?," Energy Economics, Elsevier, vol. 123(C).

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    More about this item

    Keywords

    Development zones; Green innovation; Influence mechanism; Time-varying DID; China;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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