IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v54y2020i8p1136-1148.html
   My bibliography  Save this article

Population agglomeration and the effectiveness of enterprise subsidies: a Chinese analysis

Author

Listed:
  • Kebin Deng
  • Zhong Ding
  • Mingli Xu

Abstract

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.

Suggested Citation

  • Kebin Deng & Zhong Ding & Mingli Xu, 2020. "Population agglomeration and the effectiveness of enterprise subsidies: a Chinese analysis," Regional Studies, Taylor & Francis Journals, vol. 54(8), pages 1136-1148, July.
    • Handle: RePEc:taf:regstd:v:54:y:2020:i:8:p:1136-1148
    DOI: 10.1080/00343404.2019.1681586
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00343404.2019.1681586
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00343404.2019.1681586?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gao, Jiong & Ma, Shoufeng & Zou, Hongyang & Du, Huibin, 2023. "How does population agglomeration influence the adoption of new energy vehicles? Evidence from 290 cities in China," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    2. Deng, Kebin & Ding, Zhong & Liao, Xiaojie & Zhu, Yushu, 2021. "Staged subsidies and corporate investments: Evidence from Chinese listed firms," Pacific-Basin Finance Journal, Elsevier, vol. 68(C).
    3. Jun Chen & Jia Liu, 2021. "Incentive and uncertainty: the simultaneous effects of demand on innovation," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(9), pages 7743-7757, September.
    4. Kai Zhao & Huahua Huang & Wanshu Wu, 2022. "State-Level Urban Agglomeration and Enterprise Innovation: A Quasi-Natural Experiment," Sustainability, MDPI, vol. 14(15), pages 1-17, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:54:y:2020:i:8:p:1136-1148. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.