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Protect your green line: Foreign residency rights and green innovation

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  • Maqsood, Umer Sahil
  • Wang, Shihao
  • Li, Qian
  • Ammar Zahid, R. M.

Abstract

This study examines the relationship between individuals possessing foreign residency rights (FRR) and their involvement in the green innovation (GI) of Chinese private enterprises. The study's findings reveal a detrimental influence of FRR on GI, primarily due to heightened financing costs that impede firms' progress in GI. However, this adverse impact is alleviated through the implementation of the Mass Entrepreneurship Innovation Campaign and firms with political connections. Furthermore, our findings indicate that extradition agreements reduce entrepreneurial feeling, fostering trust among investors, stakeholders, and creditors, thus minimizing the detrimental effects of FRR on GI. Results remain robust against alternative primary variables and endogeneity concerns.

Suggested Citation

  • Maqsood, Umer Sahil & Wang, Shihao & Li, Qian & Ammar Zahid, R. M., 2024. "Protect your green line: Foreign residency rights and green innovation," Economics Letters, Elsevier, vol. 234(C).
    • Handle: RePEc:eee:ecolet:v:234:y:2024:i:c:s0165176523004688
    DOI: 10.1016/j.econlet.2023.111442
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    References listed on IDEAS

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    Cited by:

    1. Yishan Liu & Xingao Xu & Hongbo Hai & Hadi Hussain, 2025. "Does Shared Institutional Equity Enhance Corporate Eco-Transparency Reporting? Evidence from Firm Life Cycles Stages," Sustainability, MDPI, vol. 17(2), pages 1-36, January.
    2. Li Chen & Xiankun Deng, 2024. "Executive Accountability Pressure and Green Innovation: Evidence from China," Sustainability, MDPI, vol. 17(1), pages 1-25, December.
    3. Danlei Feng & Haixia Wang & Lingdi Zhao, 2025. "Digital Technologies for Sustainable Supply Chain Performance: Source-Push and Value Chain-Pull Mechanisms," Sustainability, MDPI, vol. 17(12), pages 1-24, June.
    4. Yemeng Sun & Xiaoxia Zhang & Guoyu Yang, 2025. "The Power of Green Communication: A Dual Path to Enhanced Corporate Resilience Through Environmental Information Disclosure," Sustainability, MDPI, vol. 17(3), pages 1-23, January.

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