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Financing constraints, land supply constraints, and firms' total factor productivity: evidence from farmland protection policies

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  • Xiang, Linfeng
  • Xia, Yong
  • Liu, Zhicheng
  • Qin, Xiaoshun

Abstract

Using data on Chinese listed firms from 2005 to 2023, this paper examines the relationships among financing constraints, land supply constraints, and firms' total factor productivity (TFP). The results show that both land supply constraints and financing constraints significantly reduce firms' TFP. Furthermore, financing constraints play a significant moderating role in the relationship between land supply constraints and TFP. Heterogeneity analysis reveals that the suppressive effects of land supply constraints and financing constraints on TFP are stronger for large-scale firms. This study provides empirical evidence for optimizing factor allocation and achieving high-quality economic development.

Suggested Citation

  • Xiang, Linfeng & Xia, Yong & Liu, Zhicheng & Qin, Xiaoshun, 2026. "Financing constraints, land supply constraints, and firms' total factor productivity: evidence from farmland protection policies," Finance Research Letters, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:finlet:v:90:y:2026:i:c:s1544612325025450
    DOI: 10.1016/j.frl.2025.109296
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    References listed on IDEAS

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