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The impact of ESG on firms’ export technology complexity

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  • Ma, Yisen
  • Song, Caixia

Abstract

This study investigates the impact of ESG on export technological complexity using data from Chinese A-share firms between 2009 and 2016 sourced from the CSMAR database, the China Customs Database, and the CEPII-BACI Trade Database and World Bank. The analysis demonstrates a positive correlation between ESG practices and sophisticated export products, even after series of robustness checks. Furthermore, the study identifies two key mechanisms through which ESG influences export technological complexity: the enhancement of green technological innovation and improvements in corporate management capabilities. The effect of ESG is found to be more pronounced in firms operating within stable economic environments, in non-state-owned enterprises, and in regions with higher levels of marketization. The findings suggest that while firms pursue better ESG performance, they simultaneously achieve other economic benefits, particularly in terms of enhanced export competitiveness. This enriches the existing literature on the economic effects of ESG practices.

Suggested Citation

  • Ma, Yisen & Song, Caixia, 2025. "The impact of ESG on firms’ export technology complexity," Finance Research Letters, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:finlet:v:72:y:2025:i:c:s1544612324016428
    DOI: 10.1016/j.frl.2024.106613
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    References listed on IDEAS

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    More about this item

    Keywords

    ESG; Export technological complexity; China; A-share Firms;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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