Cross-border e-commerce comprehensive pilot zones, tax expenditures, and firm innovation

Yun Jiang and Yanru Zhang

Finance Research Letters, 2025, vol. 83, issue C

Abstract: Based on data from listed companies between 2012 and 2023, this study systematically evaluates the policy effects of Comprehensive Cross-Border E-Commerce Pilot Zones (CCBEPZs) on enterprise innovation using a multi-period difference-in-differences (DID) model. The findings reveal that the establishment of these zones significantly increases the number of enterprise patent applications. However, tax incentives exhibit a "substitution effect" on corporate innovation: government subsidies crowd out firms' independent R&D investments, fostering policy dependence. This counterintuitive finding suggests that merely increasing tax incentives may not sustainably enhance firms' innovation momentum. Mediation effect analysis further indicates that CCBEPZs indirectly unlock innovation resources by reducing transaction costs for enterprises.

Keywords: Comprehensive cross-border e-commerce pilot zones; tax expenditures; enterprise innovation (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612325009833
Full text for ScienceDirect subscribers only

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:eee:finlet:v:83:y:2025:i:c:s1544612325009833

DOI: 10.1016/j.frl.2025.107725

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().