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Property rights protection, financial access and corporate R&D: Evidence from a large representative sample of Chinese firms

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  • Fu, Tong
  • Jian, Ze

Abstract

The motivation of this paper is to explore why corporate R&D investments are significantly different under similar institutional backgrounds. Our estimates not only confirm a positive relationship from property rights protection (hereafter PRP) to corporate R&D, but also show the mediation effect of financial access on this positive relationship. Thus, we use financial access to explain the variant effect of PRP on corporate R&D. With exogenous instrumental variables, our estimates are robust to endogeneity issues.

Suggested Citation

  • Fu, Tong & Jian, Ze, 2018. "Property rights protection, financial access and corporate R&D: Evidence from a large representative sample of Chinese firms," Economic Systems, Elsevier, vol. 42(2), pages 332-345.
    • Handle: RePEc:eee:ecosys:v:42:y:2018:i:2:p:332-345
    DOI: 10.1016/j.ecosys.2017.07.004
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    More about this item

    Keywords

    Property rights protection; Corporate R&D; Financial access;
    All these keywords.

    JEL classification:

    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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