Tax Incentives, R&D Investment, and Employment Absorption: Evidence from Chinese Technology-Based SMEs

Yanhua Mao

SAGE Open, 2024, vol. 14, issue 2, 21582440241251809

Abstract: This paper investigates the mechanisms of tax incentives and R&D investments on employment absorption, constructs a panel data model with a sample of 4,255 Chinese technology-based SMEs, and adopts a random effect model for empirical evidence after various tests. The research results show that tax incentives and R&D investments of technology-based SMEs positively affect their employment absorption. The positive effect not only exists in the current period but also remains valid in the next period. R&D investment, operating profit margin, and remuneration have more significant positive impacts on employment absorption, while we should pay attention to control and reduce overhead costs. Finally, this paper gives corresponding suggestions and countermeasures from three levels: government, enterprises, and society.

Keywords: technology-based SMEs; tax incentives; R&D; employment absorption (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/21582440241251809 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:14:y:2024:i:2:p:21582440241251809

DOI: 10.1177/21582440241251809

Access Statistics for this article

More articles in SAGE Open
Bibliographic data for series maintained by SAGE Publications ().