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Protect your green line: Foreign residency rights and green innovation

Author

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  • Maqsood, Umer Sahil
  • Wang, Shihao
  • Li, Qian
  • Ammar Zahid, R. M.

Abstract

This study examines the relationship between individuals possessing foreign residency rights (FRR) and their involvement in the green innovation (GI) of Chinese private enterprises. The study's findings reveal a detrimental influence of FRR on GI, primarily due to heightened financing costs that impede firms' progress in GI. However, this adverse impact is alleviated through the implementation of the Mass Entrepreneurship Innovation Campaign and firms with political connections. Furthermore, our findings indicate that extradition agreements reduce entrepreneurial feeling, fostering trust among investors, stakeholders, and creditors, thus minimizing the detrimental effects of FRR on GI. Results remain robust against alternative primary variables and endogeneity concerns.

Suggested Citation

  • Maqsood, Umer Sahil & Wang, Shihao & Li, Qian & Ammar Zahid, R. M., 2024. "Protect your green line: Foreign residency rights and green innovation," Economics Letters, Elsevier, vol. 234(C).
    • Handle: RePEc:eee:ecolet:v:234:y:2024:i:c:s0165176523004688
    DOI: 10.1016/j.econlet.2023.111442
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    References listed on IDEAS

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