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Credit depth, government intervention and innovation in China: evidence from the provincial data

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  • Aoife Hanley
  • Wan-Hsin Liu

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  • Andrea Vaona

Abstract

This paper investigates the role of regional credit systems for Chinese regional innovation, using data for the period 2000–2008. Both the effects of credit depth and government intervention are investigated. Results show that regional credit depth has a significantly positive effect on regional innovation performance. Credit depth has more marked impacts on major innovations (i.e., invention patents) than on less complicated innovations (i.e., utility model and external design patents). Additionally, our results do not suggest a reduction in the efficiency of regional innovation from increased government intervention via state-owned commercial banks. Copyright Eurasia Business and Economics Society 2015

Suggested Citation

  • Aoife Hanley & Wan-Hsin Liu & Andrea Vaona, 2015. "Credit depth, government intervention and innovation in China: evidence from the provincial data," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 5(1), pages 73-98, June.
  • Handle: RePEc:spr:eurasi:v:5:y:2015:i:1:p:73-98
    DOI: 10.1007/s40821-015-0016-2
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    Cited by:

    1. Alessandra Colombelli & Jackie Krafft & Marco Vivarelli, 2016. "To be born is not enough: the key role of innovative start-ups," Small Business Economics, Springer, vol. 47(2), pages 277-291, August.
    2. Michael Stuetzer & David B. Audretsch & Martin Obschonka & Samuel D. Gosling & Peter J. Rentfrow & Jeff Potter, 2018. "Entrepreneurship culture, knowledge spillovers and the growth of regions," Regional Studies, Taylor & Francis Journals, vol. 52(5), pages 608-618, May.
    3. Alessandra Colombelli & Jackie Krafft & Marco Vivarelli, 2016. "Entrepreneurship and Innovation: New Entries, Survival, Growth," GREDEG Working Papers 2016-04, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
    4. Sara Amoroso, 2017. "Multilevel heterogeneity of R&D cooperation and innovation determinants," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 7(1), pages 93-120, April.
    5. Colombelli, Alessandra & Krafft, Jackie & Vivarelli, Marco, 2016. "New Firms and Post-Entry Performance: The Role of Innovation," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201602, University of Turin.

    More about this item

    Keywords

    Regional credit system; FDI; Regional innovation; China; G20; O30; O53; R10;

    JEL classification:

    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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