IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i9p5277-d550849.html
   My bibliography  Save this article

Impacts of Green Innovation, Institutional Constraints and Their Interactions on High-Quality Economic Development across China

Author

Listed:
  • Chenggang Li

    (School of Big Data Application and Economics, Guizhou University of Finance and Economics, Guiyang 550025, China
    Guizhou Key Laboratory of Big Data Statistics Analysis, Guizhou University of Finance and Economics, Guiyang 550025, China)

  • Jun Wan

    (School of Big Data Application and Economics, Guizhou University of Finance and Economics, Guiyang 550025, China)

  • Zhenci Xu

    (Department of Geography, The University of Hong Kong, Hong Kong 999077, China)

  • Tao Lin

    (School of Big Data Application and Economics, Guizhou University of Finance and Economics, Guiyang 550025, China)

Abstract

In 2015, China put forward five development concepts, propounded the concept of green development and green innovation, and adhered to the road of sustainable development. China also promoted the vision of high-quality economic development in 2017. It is very important to study the impacts of green innovation on high-quality development. However, scant research has been conducted on the impact of green innovation and institutional constraints on high-quality economic development simultaneously over both space and time in China. In this study, we analyze the impacts of green innovation on high-quality economic development across China from 2014 to 2018. The panel data model and the panel threshold model are developed, and the impact of green innovation and institutional constraints on high-quality economic development is empirically analyzed. Our results indicate that the comprehensive index and the level of high-quality economic development in all regions of China are increasing consistently. At the national level, addressing green innovation and institutional constraints have shown a significant positive impact on high-quality economic development. At the regional level, the interaction of green innovation and institutional constraints (i.e., mitigation of institutional constraints by green revolution) has a more positive impact on the economic quality of eastern China than that of central China. The interaction between green innovation and institutional constraints shows no positive impact on the high-quality economic development of the central and western regions because the green innovation, institutional constraints, and economic development in the central and western regions are weaker than those in the eastern regions. Therefore, it is suggested that different regions of China, especially the central and western ones, should strengthen green innovation, improve the market system, and increase government support.

Suggested Citation

  • Chenggang Li & Jun Wan & Zhenci Xu & Tao Lin, 2021. "Impacts of Green Innovation, Institutional Constraints and Their Interactions on High-Quality Economic Development across China," Sustainability, MDPI, vol. 13(9), pages 1-19, May.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:9:p:5277-:d:550849
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/9/5277/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/9/5277/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marra, Alessandro & Antonelli, Paola & Pozzi, Cesare, 2017. "Emerging green-tech specializations and clusters – A network analysis on technological innovation at the metropolitan level," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1037-1046.
    2. Tan, R.R. & Aviso, K.B. & Ng, D.K.S., 2019. "Optimization models for financing innovations in green energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    3. Yuriy Gorodnichenko & Monika Schnitzer, 2013. "Financial Constraints And Innovation: Why Poor Countries Don'T Catch Up," Journal of the European Economic Association, European Economic Association, vol. 11(5), pages 1115-1152, October.
    4. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    5. Leonid Kogan & Dimitris Papanikolaou & Amit Seru & Noah Stoffman, 2017. "Technological Innovation, Resource Allocation, and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(2), pages 665-712.
    6. Hansen, Bruce E., 1999. "Threshold effects in non-dynamic panels: Estimation, testing, and inference," Journal of Econometrics, Elsevier, vol. 93(2), pages 345-368, December.
    7. Tang, Chor Foon & Tan, Eu Chye, 2013. "Exploring the nexus of electricity consumption, economic growth, energy prices and technology innovation in Malaysia," Applied Energy, Elsevier, vol. 104(C), pages 297-305.
    8. Daron Acemoglu & Philippe Aghion & Fabrizio Zilibotti, 2006. "Distance to Frontier, Selection, and Economic Growth," Journal of the European Economic Association, MIT Press, vol. 4(1), pages 37-74, March.
    9. Barro, Robert J & Sala-i-Martin, Xavier, 1997. "Technological Diffusion, Convergence, and Growth," Journal of Economic Growth, Springer, vol. 2(1), pages 1-26, March.
    10. María Morales, 2004. "Research policy and endogenous growth," Spanish Economic Review, Springer;Spanish Economic Association, vol. 6(3), pages 179-209, October.
    11. Gene M. Grossman & Elhanan Helpman, 1993. "Innovation and Growth in the Global Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262570971, April.
    12. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tao Zhou & Rui Ding & Yiming Du & Yilin Zhang & Shihui Cheng & Ting Zhang, 2022. "Study on the Coupling Coordination and Spatial Correlation Effect of Green Finance and High-Quality Economic Development—Evidence from China," Sustainability, MDPI, vol. 14(6), pages 1-22, March.
    2. Changyun Zhou & Junxi Zhu & Zhuo Chen, 2024. "Fiscal Decentralization, Environmental Regulation, and Green Technological Innovation: Evidence from China," Sustainability, MDPI, vol. 16(11), pages 1-17, May.
    3. Yan Mei & Jingyi Miao & Yuhui Lu, 2022. "Digital Villages Construction Accelerates High-Quality Economic Development in Rural China through Promoting Digital Entrepreneurship," Sustainability, MDPI, vol. 14(21), pages 1-29, October.
    4. Muhammad Sohail Amjad Makhdum & Muhammad Usman & Rakhshanda Kousar & Javier Cifuentes-Faura & Magdalena Radulescu & Daniel Balsalobre-Lorente, 2022. "How Do Institutional Quality, Natural Resources, Renewable Energy, and Financial Development Reduce Ecological Footprint without Hindering Economic Growth Trajectory? Evidence from China," Sustainability, MDPI, vol. 14(21), pages 1-25, October.
    5. Shaohui Zhang & Zhongxian Han & Mingwei Guo, 2024. "FDI, new development philosophy and China’s high-quality economic development," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(10), pages 25227-25255, October.
    6. Debao Dai & Yaodong Fan & Guangyu Wang & Jiaping Xie, 2022. "Digital Economy, R&D Investment, and Regional Green Innovation—Analysis Based on Provincial Panel Data in China," Sustainability, MDPI, vol. 14(11), pages 1-21, May.
    7. Bo Wang & Cheng Peng & Jiujiang Wu & Fangwei Liao, 2022. "The Impact of Political Connections on Corporate Green Innovation: The Mediating Effect of Corporate Social Responsibility and the Moderating Effect of Environmental Public Opinion," Sustainability, MDPI, vol. 14(8), pages 1-18, April.
    8. Lingling Zhang & Yufeng Wang & Rahman Dunya, 2023. "How Does Environmental Regulation Affect the Development of China’s Pig Industry," Sustainability, MDPI, vol. 15(10), pages 1-22, May.
    9. Li, Yibo & Jia, Xiaofen, 2023. "Asymmetric role of natural resources in uplifting the economic status of resource-rich economies," Resources Policy, Elsevier, vol. 85(PB).
    10. Guangming Yang & Siyi Cheng & Qingqing Gui & Xinlan Chen, 2022. "The Coupling and Coordination Characteristics and Influencing Factors of Green Innovation Efficiency (GIE) and Economic Development Levels in China," Sustainability, MDPI, vol. 14(21), pages 1-20, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aghion, Philippe & Howitt, Peter, 2005. "Growth with Quality-Improving Innovations: An Integrated Framework," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 2, pages 67-110, Elsevier.
    2. Chen, Feng-Wen & Xu, Jingwei & Wang, Jiang & Li, Zhilong & Wu, Yongqiu, 2023. "Do rising labour costs promote technology upgrading? A novel theoretical hypothesis of an inverted U-shaped relationship," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 327-341.
    3. Sumbal Fatima & Bateer Chen & Muhammad Ramzan & Qamar Abbas, 2020. "The Nexus Between Trade Openness and GDP Growth: Analyzing the Role of Human Capital Accumulation," SAGE Open, , vol. 10(4), pages 21582440209, November.
    4. V. Vandenberghe, 2018. "The Contribution of Educated Workers to Firms’ Efficiency Gains: The Key Role of Proximity to the ‘Local’ Frontier," De Economist, Springer, vol. 166(3), pages 259-283, September.
    5. Çağatay Bircan & Ralph De Haas, 2020. "The Limits of Lending? Banks and Technology Adoption across Russia," The Review of Financial Studies, Society for Financial Studies, vol. 33(2), pages 536-609.
    6. Aghion, Philippe & Akcigit, Ufuk & Howitt, Peter, 2014. "What Do We Learn From Schumpeterian Growth Theory?," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 2, chapter 0, pages 515-563, Elsevier.
    7. Kong, Dongmin & Zhang, Bohui & Zhang, Jian, 2022. "Higher education and corporate innovation," Journal of Corporate Finance, Elsevier, vol. 72(C).
    8. Predrag Petrović & Goran Nikolić, 2018. "Schumpeterian Growth Theory: Empirical Testing Of Barriers To Competition-Proximity To Frontier Algorithm," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 63(217), pages 7-38, April – J.
    9. Shusen Qi & Steven Ongena, 2020. "Fuel the Engine: Bank Credit and Firm Innovation," Journal of Financial Services Research, Springer;Western Finance Association, vol. 57(2), pages 115-147, April.
    10. Fabio Manca, 2011. "The Farthest Needs the Best. Human Capital Composition and Development Specific Economic Growth," DEGIT Conference Papers c016_048, DEGIT, Dynamics, Economic Growth, and International Trade.
    11. Voxi Heinrich Amavilah & Antonio Rodríguez Andrés, 2024. "Knowledge Economy and the Economic Performance of African Countries: A Seemingly Unrelated and Recursive Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 110-143, March.
    12. Linda Glawe & Helmut Wagner, 2016. "The Middle-Income Trap: Definitions, Theories and Countries Concerned—A Literature Survey," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 58(4), pages 507-538, December.
    13. Hardy, Bryan & Sever, Can, 2021. "Financial crises and innovation," European Economic Review, Elsevier, vol. 138(C).
    14. Otsuka, Keijiro & Higuchi, Yuki & Sonobe, Tetsushi, 2017. "Middle-income traps in East Asia: An inquiry into causes for slowdown in income growth," China Economic Review, Elsevier, vol. 46(S), pages 3-16.
    15. Philippe Aghion & Agnès Festré, 2017. "Schumpeterian growth theory, Schumpeter, and growth policy design," Journal of Evolutionary Economics, Springer, vol. 27(1), pages 25-42, January.
    16. Abdin, Joynal & Sharma, Abhijit & Trivedi, Rohit & Wang, Chengang, 2024. "Financing constraints, intellectual property rights protection and incremental innovation: Evidence from transition economy firms," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    17. Aribah Aslam, 2020. "The hotly debate of human capital and economic growth: why institutions may matter?," Quality & Quantity: International Journal of Methodology, Springer, vol. 54(4), pages 1351-1362, August.
    18. Juan R. Perilla Jiménez & Thomas H. W. Ziesemer, 2024. "Technology adoption, innovation policy and catching-up," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-24, April.
    19. Sadik, Jacques, 2008. "Technology adoption, convergence, and divergence," European Economic Review, Elsevier, vol. 52(2), pages 338-355, February.
    20. Dohse, Dirk & Ott, Ingrid, 2008. "Determinants of growth and convergence in a growing economy with heterogeneous entrepreneurs," Kiel Working Papers 1467, Kiel Institute for the World Economy (IfW Kiel).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:9:p:5277-:d:550849. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.