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The impact of government procurement on green technological innovation: Evidence from manufacturing sector in china

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  • Liu, Xiaofeng
  • Miao, Haoran
  • Zhou, Wenxiang
  • Qiu, Yumin

Abstract

This study investigates the impact of government procurement on green technological innovation (GTI) within China's manufacturing sector amid rapid economic growth and escalating environmental concerns. Using data from listed manufacturing firms, our analysis reveals a robust positive correlation between government procurement and GTI. Notably, we ascertain that larger-scale procurement exerts a more pronounced influence, effectively addressing financial constraints. Additionally, we shed light on how top executives' political connections amplify the impact of government procurement on GTI. Furthermore, our examination uncovers a significant impact on green invention patents, underscoring the efficacy of government procurement in driving innovation. Policy implications emerge, advocating for expanded procurement initiatives, adjusted bidding thresholds, and heightened emphasis on green technology acquisition to stimulate market demand. We advocate for the elevation of executives with political backgrounds and the cultivation of environmental consciousness to bolster green competitiveness. Overall, our findings contribute valuable insights into the pivotal role of government procurement in fostering GTI and offer strategic directions for market-driven environmental policies.

Suggested Citation

  • Liu, Xiaofeng & Miao, Haoran & Zhou, Wenxiang & Qiu, Yumin, 2024. "The impact of government procurement on green technological innovation: Evidence from manufacturing sector in china," Pacific-Basin Finance Journal, Elsevier, vol. 86(C).
    • Handle: RePEc:eee:pacfin:v:86:y:2024:i:c:s0927538x24002087
    DOI: 10.1016/j.pacfin.2024.102457
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    3. Liu, Bingbing, 2025. "How does digital transformation enhance enterprise technological innovation? Evidence from Chinese manufacturing listed companies," Technology in Society, Elsevier, vol. 82(C).
    4. Li, Yong & Qin, Lulu & He, Zixiang, 2025. "Corporate green transformation and bankruptcy risk: Empirical evidence from Chinese manufacturing firms," Pacific-Basin Finance Journal, Elsevier, vol. 93(C).
    5. Xia, Jia & Wei, Wei, 2025. "Government procurement and corporate investment: Evidence from China's A-share listed companies," Economic Modelling, Elsevier, vol. 152(C).
    6. Ai Mingxing, 2025. "The Impact of Public Procurement Law Reform on Innovative Procurement Strategy," SAGE Open, , vol. 15(4), pages 21582440251, November.
    7. Ma, Jie & Chen, Xudong & Feng, Tong & Xu, Bing & Lu, Hongyuan & Guo, Quan, 2026. "The synergistic effects of demand-pull and supply-push policies on firm’s green innovation: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 89(C), pages 527-541.
    8. Li Wang & Hongxuan Wu & Jian Zhang, 2025. "Green Public Procurement and Its Influence on Urban Carbon Emission Intensity: Spatial Spillovers Across 285 Prefectural Cities in China," Land, MDPI, vol. 14(8), pages 1-27, July.

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