Detail publikace

The Real Effects of GDP Manipulation on Corporate Innovation: Evidence From China

DENG, Y. FANG, F. ŠIRÁŇOVÁ, L. ZHANG, J. CAO, X.

Originální název

The Real Effects of GDP Manipulation on Corporate Innovation: Evidence From China

Typ

článek v časopise ve Web of Science, Jimp

Jazyk

angličtina

Originální abstrakt

Corporate innovation is fundamental to the sustainable competitiveness of any economy. This paper examines whether and how local government-level macroeconomic growth pressure induced by gross domestic product (GDP) manipulation in China affects corporate innovation. Using calibrated satellite night light data to construct the GDP manipulation index, we find that GDP manipulation reduces local firms' ' R&D expenditure in the year ahead. The result holds up through robustness tests using different measures of GDP manipulation and corporate innovation. Additionally, we employ an instrumental variable approach to address endogeneity issues and enhance the strength of the causal inference. Furthermore, we find that the effect of GDP manipulation on local corporate innovation is stronger in regions with higher government intervention and where local governments control greater resources. Moreover, this finding is more prominent when local governors face intensified economic growth pressure or promotion incentives. This paper provides evidence that the Chinese government's ' s incentive to boost GDP growth negatively affects corporate innovation. Our findings offer valuable insights for policymakers aiming to stimulate economic growth and enhance competitiveness within their jurisdiction. By implication, it is necessary to form a financial and administrative system that effectively promotes industrial innovation and facilitates the transformation of the economic growth model into one driven by technology and innovation to gain a reasonable competitive advantage both within China and internationally. Future research may explore the evolving dynamics of GDP manipulation's ' s impact on other microeconomic behaviors, with particular focus on how it hinders competitiveness across industries and regions.

Klíčová slova

GDP manipulation; Corporate innovation; Political promotion pressure; China

Autoři

DENG, Y.; FANG, F.; ŠIRÁŇOVÁ, L.; ZHANG, J.; CAO, X.

Vydáno

30. 9. 2024

Nakladatel

Faculty of Management and Economics of Tomas Bata University in Zlín

Místo

ZLIN

ISSN

1804-171X

Periodikum

Journal of Competitiveness

Ročník

16

Číslo

3

Stát

Česká republika

Strany od

221

Strany do

237

Strany počet

17

URL

https://www.cjournal.cz/index.php?hid=clanek&bid=archiv&cid=550&cp=

Plný text v Digitální knihovně

http://hdl.handle.net/11012/250755

BibTex

@article{BUT191267,
  author="Yuemeng {Deng} and Fang {Fang} and Lenka {Širáňová} and Jie {Zhang} and Xin {Cao}",
  title="The Real Effects of GDP Manipulation on Corporate Innovation: Evidence From China",
  journal="Journal of Competitiveness",
  year="2024",
  volume="16",
  number="3",
  pages="221--237",
  doi="10.7441/joc.2024.03.11",
  issn="1804-171X",
  url="https://www.cjournal.cz/index.php?hid=clanek&bid=archiv&cid=550&cp="
}