Research on the Impact of Sci-Tech Finance on Industrial TFP

Shujuan Li, Min Xi and Dongmei Li

Chinese Economy, 2024, vol. 57, issue 3, 180-192

Abstract: The improvement of industrial Total Factor Productivity (TFP) is the basis for the high-quality development of China’s economy. Sci-tech finance affects industrial TFP through screening and allocation mechanism, governance mechanism, and integration mechanism. Based on provincial panel data from 2009 to 2016, this paper constructs a comprehensive index of regional Sci-tech finance and explores the impact of Sci-tech finance on industrial TFP from two perspectives: differences in financial development levels and transmission paths. The results show that Sci-tech finance has a significant role in promoting the industrial TFP, but this promotion needs to meet certain financial development conditions. In high-level financial development areas, the promotion effect is significant. It is not linear. The effect is a threshold effect with the diminishing marginal efficiency. Sci-tech finance mainly promotes industrial TFP through boosting the industry’s scientific and technological innovation capacity. Policies and channels of Sci-tech finance to support science and technology innovation are put forward.

Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:mes:chinec:v:57:y:2024:i:3:p:180-192

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DOI: 10.1080/10971475.2024.2319410

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