Can institutional openness policies enhance corporate technology innovation efficiency?Evidence from the establishment of Free Trade Zone

IF 4.8 2区经济学 Q1 BUSINESS, FINANCE

International Review of Economics & Finance Pub Date : 2024-11-27 DOI:10.1016/j.iref.2024.103754

Yan Li

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Abstract

The establishment of Free Trade Zones (FTZs) is a testing ground for deepening reform in the new era. It is a significant endeavour for China to investigate institutional innovation, execute an innovation-driven development strategy, and raise the quality of economic development. This study examines a sample of Chinese A-share listed companies from 2009 to 2022 and explores the positive relationship between institutional openness, represented by China's Free Trade Zone, on corporate technology innovation efficiency. The findings highlight that introducing China's Free Trade Zone can strengthen corporate technology innovation efficiency. Furthermore, the stimulating impacts of China's Free Trade Zone on corporate technology innovation efficiency are attained through alleviating corporate financing constraints and facilitating innovative knowledge flow. Heterogeneous analysis confirms that firms' ownership and industry nature play a critical role. The findings demonstrate how institutional openness can enhance stimulate corporate technology innovation efficiency, support the critical role of openness in stimulating corporate technology innovation capability, and contribute to further institutional openness.

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来源期刊

International Review of Economics & Finance Multiple-

CiteScore

7.30

自引率

2.20%

发文量

253

期刊介绍： The International Review of Economics & Finance (IREF) is a scholarly journal devoted to the publication of high quality theoretical and empirical articles in all areas of international economics, macroeconomics and financial economics. Contributions that facilitate the communications between the real and the financial sectors of the economy are of particular interest.