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How sci-tech finance empowers china's low-altitude economy: Mechanisms and countermeasures

Author

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  • Chai, Yongdong
  • Liu, Jinpeng
  • Zhang, Yuanchao
  • Zhang, Huilei

Abstract

This study examines the impact of science and technology finance on China’s low-altitude economy, a sector central to the ongoing Fourth Transportation Revolution. Using a sample of 428 Chinese A-share listed firms in this industry from 2013 to 2023, it constructs a comprehensive evaluation system based on the structure–conduct–performance (SCP) paradigm. Empirical analyses employing fixed effects models and mediation tests reveal that science and technology finance has a significant direct promoting effect on the development of China’s low-altitude economy—a finding that remains robust after multiple robustness tests and endogeneity corrections. Furthermore, it indirectly fosters industry growth by improving credit accessibility. The study also finds that more developed regional financial ecosystems strengthen this promoting effect, and that non-state-owned enterprises utilize resources more efficiently than state-owned enterprises. These results delineate the dual mediation pathways through which science and technology finance supports the low-altitude economy, providing empirical evidence for enhancing financial support policies for China’s strategic emerging industries.

Suggested Citation

  • Chai, Yongdong & Liu, Jinpeng & Zhang, Yuanchao & Zhang, Huilei, 2026. "How sci-tech finance empowers china's low-altitude economy: Mechanisms and countermeasures," Finance Research Letters, Elsevier, vol. 91(C).
    • Handle: RePEc:eee:finlet:v:91:y:2026:i:c:s154461232502714x
    DOI: 10.1016/j.frl.2025.109465
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    References listed on IDEAS

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