Population agglomeration and the effectiveness of enterprise subsidies: a Chinese analysis
Zhong Ding and
Regional Studies, 2020, vol. 54, issue 8, 1136-1148
This paper investigates the impact of population agglomeration on the relation between government subsidies and firm innovation. It constructs a parsimonious model to show that the positive effect of government subsidies on innovation by small-cap enterprises should be pronounced only in regions with higher population densities. Moreover, using the ‘mass entrepreneurship and innovation’ policy implemented by the Chinese government in 2015, and the resulting boost in government subsidies to small-cap enterprises as a natural experiment, the paper confirms the theoretical prediction and demonstrates that population density strengthens the positive relationship between government subsidies and firm innovation in small-cap enterprises. When the population density of a region is below a certain threshold (1100 people/km2), the positive connection between government subsidies and technological innovation disappears.
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:regstd:v:54:y:2020:i:8:p:1136-1148
Ordering information: This journal article can be ordered from
Access Statistics for this article
Regional Studies is currently edited by Ivan Turok
More articles in Regional Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().