Government IT related Hi-Tech company’s incentives and subsidies role on industries in Hebei province, China

Faizo Kasule, Li Zibiao and Keyuan Sun
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Faizo Kasule: Department of Economics and Business Mnagement, Hebei University of Technology, Tianjin, China
Li Zibiao: Department of Economics and Business Mnagement, Hebei University of Technology, Tianjin, China
Keyuan Sun: Department of Economics and Business Mnagement, Hebei University of Technology, Tianjin, China

Journal of Administrative and Business Studies, 2018, vol. 4, issue 4, 219-230

Abstract: Economic implications on government incentives to industries are key areas that require critical analysis in un- derstanding the impacts. Tax incentives is the most predominant approach used in most cases in reducing vari- ous related costs. This research uses the government annual survey data on Chinese listed corporation in Hebei province to investigative the incentives related parameters. Data from a survey of 85 IT related industries in Hebei province showed that there was significant positive impact of company’s incentives role, the incentives given by government increase output in industries. This study also examined the role that the government incentives played in regard to high-tech related industries Using multiple regression analysis method, the results indicated that re- lated Hi-tech company’s incentives created a significant impact in increasing the gross value of industrial output, created an impact in both product sales income and the commodity sales revenue. However, the results indicated that not all the government Information Technology (IT) related Hi-tech company’s incentives that led to improved total income between the periods of study. Moreover, there would be anticipated increase employee rate if these incentives were constantly provided to Hi-tech companies consistently but in totality there was no clear increase in personnel over that period. the aim of this paper is to reveal the impact created by the government incentives on the IT related Hi tech companies. This study therefore provided room for discussion and further studies that would help in coming up with other concrete evidence in subsequent years.

Keywords: Government’s incentives; Government’s subsidies; Innovation performance; IT related Hi-Tech companies (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:apb:jabsss:2018:p:219-230

DOI: 10.20474/jabs-4.4.4

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