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Welfare and productivity of the Chinese regional economy under forced technology transfer in the post-intervention period of the Green Credit Policy

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  • Yan, Eric
  • Okafor, Luke
  • Chao, Chi-Chur

Abstract

Our study explores the interplay between state-owned enterprises (SOEs) and foreign enterprises under China’s Green Credit Policy. Using matrix completion method, we estimate welfare and productivity impacts, revealing differing trends in coastal and inland provinces. Forced technology transfer in coastal areas drives out foreign capital, while inland regions may experience production expansion. Despite this, our findings indicate an overall negative effect on productivity and welfare. This suggests that promoting the Green Credit Policy under nationalism may inadvertently impede China’s economic progress.

Suggested Citation

  • Yan, Eric & Okafor, Luke & Chao, Chi-Chur, 2025. "Welfare and productivity of the Chinese regional economy under forced technology transfer in the post-intervention period of the Green Credit Policy," Journal of Asian Economics, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:asieco:v:96:y:2025:i:c:s1049007824001428
    DOI: 10.1016/j.asieco.2024.101847
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    References listed on IDEAS

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    1. Susan Athey & Mohsen Bayati & Nikolay Doudchenko & Guido Imbens & Khashayar Khosravi, 2021. "Matrix Completion Methods for Causal Panel Data Models," Journal of the American Statistical Association, Taylor & Francis Journals, vol. 116(536), pages 1716-1730, October.
    2. Lee Branstetter, 2018. "China’s Forced Technology Transfer Problem—And What to Do About It," Policy Briefs PB18-13, Peterson Institute for International Economics.
    3. Yan, Eric, 2020. "Do state-owned enterprises influence technological development?," Economics Letters, Elsevier, vol. 193(C).
    4. Chia-Wen Chen & Wei-Min Hu & Christopher R. Knittel, 2021. "Subsidizing Fuel-Efficient Cars: Evidence from China's Automobile Industry," American Economic Journal: Economic Policy, American Economic Association, vol. 13(4), pages 152-184, November.
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