{"title":"Administrative Approval Reform and Firm Green Innovation: Evidence From China","authors":"Chu Li, Ni Hong","doi":"10.1002/mde.4526","DOIUrl":null,"url":null,"abstract":"<div>\n \n <p>This study investigates the impact of China's administrative approval reform on firm green innovation using a difference-in-differences (DID) approach with data from 24,981 firm-year observations of Chinese listed manufacturing firms from 2000 to 2023. The reform, characterized by establishing administrative approval centers, significantly enhances firm green innovation, as measured by the number of green patent applications. Robustness checks, including alternative measures of green innovation and instrumental variable analysis, confirm the positive effect. Mechanism tests reveal that the reform primarily promotes green innovation by alleviating firm financing constraints, rather than enhancing market competition or curbing management short-termism. The findings underscore the importance of reducing institutional transaction costs and easing financing constraints to foster green innovation, thereby offering insights for policymakers to promote sustainable development through institutional reforms.</p>\n </div>","PeriodicalId":18186,"journal":{"name":"Managerial and Decision Economics","volume":"46 5","pages":"3212-3225"},"PeriodicalIF":2.7000,"publicationDate":"2025-03-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Managerial and Decision Economics","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/mde.4526","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
This study investigates the impact of China's administrative approval reform on firm green innovation using a difference-in-differences (DID) approach with data from 24,981 firm-year observations of Chinese listed manufacturing firms from 2000 to 2023. The reform, characterized by establishing administrative approval centers, significantly enhances firm green innovation, as measured by the number of green patent applications. Robustness checks, including alternative measures of green innovation and instrumental variable analysis, confirm the positive effect. Mechanism tests reveal that the reform primarily promotes green innovation by alleviating firm financing constraints, rather than enhancing market competition or curbing management short-termism. The findings underscore the importance of reducing institutional transaction costs and easing financing constraints to foster green innovation, thereby offering insights for policymakers to promote sustainable development through institutional reforms.
期刊介绍：
Managerial and Decision Economics will publish articles applying economic reasoning to managerial decision-making and management strategy.Management strategy concerns practical decisions that managers face about how to compete, how to succeed, and how to organize to achieve their goals. Economic thinking and analysis provides a critical foundation for strategic decision-making across a variety of dimensions. For example, economic insights may help in determining which activities to outsource and which to perfom internally. They can help unravel questions regarding what drives performance differences among firms and what allows these differences to persist. They can contribute to an appreciation of how industries, organizations, and capabilities evolve.
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