Echoes of dependency: The impact of resource reliance on green industry transformation in China

The "resource curse" has garnered significant academic attention, yet a consensus on its causes remains elusive. This article addresses this gap by empirically examining the impact of resource industry dependence on the green transformation of manufacturing corporations (GTM), based on a precise measurement. The study identifies the effect mechanism of the "resource curse" from both macro (city) and micro (enterprise) dimensions. The findings indicate that resource industry dependence significantly hampers the GTM corporations, substantiating the "resource curse" effect. Moreover, this effect is particularly pronounced in western regions, resource-based areas, and regions with well-developed transportation infrastructure. Mechanism analysis reveals that, at the macro level, resource industry dependence stifles technological innovation, weakens market competition, and diminishes credit availability and government investments in technology for manufacturing corporations, impeding their green transformation. At the micro level, resource industry dependence impedes the GTM through reduced total factor productivity, weakened profitability, reduced scale, and increased pollution. Based on these findings, the article proposes various measures to facilitate green technological progress, optimize credit allocation, improve the business environment, and enhance technology investment at the macro level. At the micro level, measures are suggested to foster internal motivation, enhance profitability, expand the scale, and control emissions. By offering empirical evidence and policy insights, this article promotes the GTM corporations and establishes a solid micro foundation for High-quality development.