The Impact of Government Introduced the Investment of High-tech industrialization on the Firm Performance
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| Title | The Impact of Government Introduced the Investment of High-tech industrialization on the Firm Performance
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| Author | Zheng Shilin and Liu Hewang |
| Organization | Institute of Quantitative and Technical Economics, CASS; Hubei University |
| Email | zhengsl@cass.org.cn,hewliu@126.com |
| Key Words | Government Financing; High-tech Industrialization; R&D Investment; Commercialization; Investment Performance |
| Abstract | In China, Government introduced the investment of high-tech industrialization has become the significant way to nurture and develop the emerging industries of strategic importance. Employing the survey data from hi-tech industry, we estimate empirically the effect of government introduced the investment of high-tech industrialization on the firm performance. We found that the specific investment not only promoted enterprises’ R&D investment and scientific research commercialization and large-scale production, but also ultimately enhanced its technological level and domestic and international competitiveness. However, the specific investment difficultly improved the efforts level of the R&D investment and labor productivity. Then, we also estimated the effect of various investment resources on the enterprises’ performance. The results showed that the investment from the bank loan has the best performance, while the investment from the central and local government financing gained the least performance. The proportion of central government financing was negatively significantly correlated with enterprise R&D investment. Moreover, a few of enterprises got more financing through improperly increasing the project of investment. In additional, the proportion of local government financing has the negative impact on the labor productivity of enterprises. This study indicates that government introduced the investment of high-tech industrialization plays a vital role in nurturing the merging industries of strategic importance in China. Nevertheless, it is necessary to improve the performance of the government financing. |
| Serial Number | WP334 |
| Time | 2012-08-29 |
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