How does ESG affect government procurement in countries where ESG systems are established from the top down?

IF 4.2 2区经济学 Q1 ECONOMICS

Economic Modelling Pub Date : 2025-02-03 DOI:10.1016/j.econmod.2025.107024

Wenna Wang , Zhen Yang , Jin Chen , Jingjiang Liu

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引用次数: 0

Abstract

Implementing Environmental, Social, and Governance (ESG) strategies enhances enterprises' competitive advantage, especially in emerging economies with top-down ESG frameworks. While extensive research exists on ESG, its impact on securing government procurement contracts in these economies remains insufficiently explored. Using data from A-share listed firms in China, an emerging economy, from 2010 to 2022, along with text analysis to obtain government procurement contract data, we examine how enterprise ESG influences the acquisition of government procurement contracts. We demonstrate that enterprises with better ESG can receive more government procurement contracts. High product quality and adherence to institutional legitimacy are key mechanisms driving these outcomes. The effect is particularly stronger among firms in regions with lower marketization levels, firms not benefiting from industrial policy support, and non-state-owned enterprises. Our research highlights the critical importance of ESG strategies in strengthening firms’ competitive positions within the government procurement market.

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来源期刊

Economic Modelling ECONOMICS-

CiteScore

8.00

自引率

10.60%

发文量

295

期刊介绍： Economic Modelling fills a major gap in the economics literature, providing a single source of both theoretical and applied papers on economic modelling. The journal prime objective is to provide an international review of the state-of-the-art in economic modelling. Economic Modelling publishes the complete versions of many large-scale models of industrially advanced economies which have been developed for policy analysis. Examples are the Bank of England Model and the US Federal Reserve Board Model which had hitherto been unpublished. As individual models are revised and updated, the journal publishes subsequent papers dealing with these revisions, so keeping its readers as up to date as possible.