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How certification programs boost SME productivity: Evidence from China’s targeted industrial policy

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  • Wang, Sinuo
  • Wei, Chu

Abstract

This study examines the productivity effects of China's Specialized, Refined, Differential, and Innovative (SRDI) industrial policy, a nationwide certification program for small and medium-sized enterprises. Using comprehensive financial data from Chinese A-share listed firms (2017–2023) and a staggered difference-in-differences design, we document three main findings. First, SRDI certification causes a 2.8 % increase in total factor productivity, robust to multiple identification strategies. Second, the productivity gains are driven by enhanced innovation activities and improved managerial efficiency. Third, heterogeneous treatment effects are more pronounced for firms in regions with favorable business environments and those operating in high-end manufacturing industries. These findings contribute to a more comprehensive understanding of the certification program, provide a replicable mode of industrial policy design, and advocate precision policy implementation.

Suggested Citation

  • Wang, Sinuo & Wei, Chu, 2026. "How certification programs boost SME productivity: Evidence from China’s targeted industrial policy," Structural Change and Economic Dynamics, Elsevier, vol. 76(C), pages 152-170.
    • Handle: RePEc:eee:streco:v:76:y:2026:i:c:p:152-170
    DOI: 10.1016/j.strueco.2025.12.005
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