Effect of Government Subsidies on the New Quality Productive Forces of Enterprises: An Empirical Study Based on A-Share Listed Companies

Wang Chuan () and Zhang Xiang
Additional contact information
Wang Chuan: National Academy of Economic Strategy, Chinese Academy of Social Sciences, Beijing, China
Zhang Xiang: School of Applied Economics, University of Chinese Academy of Social Sciences, Beijing, China

China Finance and Economic Review, 2025, vol. 14, issue 3, 87-107

Abstract: Using data from China’s A-share listed companies from 2010 to 2023, we employ the entropy weight method to create an enterprise-level new quality productive forces (NQPF) index to assess the impact of government subsidies on enterprises’ NQPF. Our findings indicate that government subsidies can generally enhance the NQPF levels of enterprises, though with notable regional, industrial, and technological variations. In particular, government subsidies can significantly boost NQPF levels in the eastern region. Additionally, these subsidies have a substantial positive effect on technology-intensive and capital-intensive enterprises, while their impact on labor-intensive enterprises is limited. Furthermore, our mechanism analysis suggests that government subsidies can improve NQPF by alleviating financing constraints, enhancing digitalization levels, and stimulating innovation within enterprises.

Keywords: new quality productive forces; government subsidies; entropy weight method; innovation (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/cfer-2025-0017 (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:bpj:cferev:v:14:y:2025:i:3:p:87-107:n:1005

DOI: 10.1515/cfer-2025-0017

Access Statistics for this article

China Finance and Economic Review is currently edited by He Dexu

More articles in China Finance and Economic Review from De Gruyter
Bibliographic data for series maintained by Peter Golla ().