Industrial policy and asset prices: Evidence from the Made in China 2025 policy

Liu, Xia; Megginson, William L.; Xia, Junjie

doi:10.1016/j.jbankfin.2022.106554

Cited by 10 publications

(2 citation statements)

References 54 publications

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“…The prerequisite for the establishment of policy evaluation is that the development status of cities before the pilot policy is introduced is similar. Referring to Liu et al (2022) 29 , we adopt a parallel trend test to verify the effectiveness of Made in China 2025 pilot policy. Figure 2 shows the result of parallel trend test.…”

Section: Resultsmentioning

confidence: 99%

“…Since the industrial policy of Made in China 2025 was proposed, scholars have predominantly focused on exploring its economic effects on technological innovation 27 , digital transformation 28 , and total factor productivity (TFP) 29 , while the potential environmental effects have been neglected. Chen et al (2024) 30 found that Made in China 2025 promotes firm innovation through tax incentives, public subsidies, convenient financing, academic collaboration and talent incentives.…”

Section: Literature Reviewmentioning

confidence: 99%

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A double machine learning model for measuring the impact of the Made in China 2025 strategy on green economic growth

Yuan,

Liu

2024

Sci Rep

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The transformation and upgrading of China’s manufacturing industry is supported by smart and green manufacturing, which have great potential to empower the nation’s green development. This study examines the impact of the Made in China 2025 industrial policy on urban green economic growth. This study applies the super-slacks-based measure model to measure cities’ green economic growth, using the double machine learning model, which overcomes the limitations of the linear setting of traditional causal inference models and maintains estimation accuracy under high-dimensional control variables, to conduct an empirical analysis based on panel data of 281 Chinese cities from 2006 to 2021. The results reveal that the Made in China 2025 strategy significantly drives urban green economic growth, and this finding holds after a series of robustness tests. A mechanism analysis indicates that the Made in China 2025 strategy promotes green economic growth through green technology progress, optimizing energy consumption structure, upgrading industrial structure, and strengthening environmental supervision. In addition, the policy has a stronger driving effect for cities with high manufacturing concentration, industrial intelligence, and digital finance development. This study provides valuable theoretical insights and policy implications for government planning to promote high-quality development through industrial policy.

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Section: Resultsmentioning

confidence: 99%