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Credit depth, government intervention and innovation in China: evidence from the provincial data

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  • Aoife Hanley
  • Wan-Hsin Liu
  • Andrea Vaona

Abstract

This paper investigates the role of regional credit systems for Chinese regional innovation, using data for the period 2000–2008. Both the effects of credit depth and government intervention are investigated. Results show that regional credit depth has a significantly positive effect on regional innovation performance. Credit depth has more marked impacts on major innovations (i.e., invention patents) than on less complicated innovations (i.e., utility model and external design patents). Additionally, our results do not suggest a reduction in the efficiency of regional innovation from increased government intervention via state-owned commercial banks. Copyright Eurasia Business and Economics Society 2015

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  • Aoife Hanley & Wan-Hsin Liu & Andrea Vaona, 2015. "Credit depth, government intervention and innovation in China: evidence from the provincial data," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 5(1), pages 73-98, June.
    • Handle: RePEc:spr:eurasi:v:5:y:2015:i:1:p:73-98
    DOI: 10.1007/s40821-015-0016-2
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    1. Michael Stuetzer & David B. Audretsch & Martin Obschonka & Samuel D. Gosling & Peter J. Rentfrow & Jeff Potter, 2018. "Entrepreneurship culture, knowledge spillovers and the growth of regions," Regional Studies, Taylor & Francis Journals, vol. 52(5), pages 608-618, May.
    2. Alessandra Colombelli & Jackie Krafft & Marco Vivarelli, 2016. "To be born is not enough: the key role of innovative start-ups," Small Business Economics, Springer, vol. 47(2), pages 277-291, August.
    3. Alessandra Colombelli & Jackie Krafft & Marco Vivarelli, 2016. "Entrepreneurship and Innovation: New Entries, Survival, Growth," GREDEG Working Papers 2016-04, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    4. Junbing Xu & Yuanyuan Li & Dawei Feng & Zhouyi Wu & Yang He, 2021. "Crowding in or crowding out? How local government debt influences corporate innovation for China," PLOS ONE, Public Library of Science, vol. 16(11), pages 1-20, November.
    5. Colombelli, Alessandra & Krafft, Jackie & Vivarelli, Marco, 2016. "New Firms and Post-Entry Performance: The Role of Innovation," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201602, University of Turin.
    6. Yundan Gong & Aoife Hanley, 2021. "Exports and New Products in China – A Generalised Propensity Score Approach with Firm-to-Firm Spillovers," Journal of Development Studies, Taylor & Francis Journals, vol. 57(12), pages 2136-2155, December.
    7. Huang Xiaobing & Meng Xinxin & Chen Meng, 2022. "A Study of Knowledge Spillovers within Chinese Mega-Economic Zones," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 16(1), pages 16-26, January.
    8. Sara Amoroso, 2017. "Multilevel heterogeneity of R&D cooperation and innovation determinants," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 93-120, April.
    9. Bingqiang Li & Jing Yu & Lei Huang & Jinzhi Li & Changhan Luo, 2021. "Coupling Development of Manufacturing Promotion and Innovation in China," SAGE Open, , vol. 11(4), pages 21582440211, October.

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    More about this item

    Keywords

    Regional credit system; FDI; Regional innovation; China; G20; O30; O53; R10;
    All these keywords.

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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