Political Promotion and Manufacturing Firm Productivity: Evidence from Chinese Firms

Abstract

<p style="text-align: justify;">This paper aims to investigate the impact of political promotion on the productivity of manufacturing firms using the database of Chinese industrial enterprises from 1998 to 2007. We found that the political promotion of officials had a negative impact on manufacturing firm productivity, and this impact varied according to the characteristics of officials and enterprises. In addition, there was an age "ceiling effect" among Chinese municipal officials. Further research showed that the regional level of rule of law mitigated the negative effect of political promotion on the productivity of manufacturing firms. Finally, this paper makes policy recommendations for improving the promotion mechanism of officials, enhancing regional legalization, and transforming government functions.</p>

Unlocking the Potential of Chinese Urban Innovation: The Role of Support Policies for New R&D Institutions from an Innovation Chain Management Perspective

“…The ramifications of policies can permeate from the enterprise level to urban and regional echelons (Zor, S et al, 2023). As urban enterprises engage in a spectrum of innovative activities, exchange insights, and forge a salubrious competitive and cooperative milieu, the overarching level of innovation is enhanced, thereby catalyzing urban economic development and transformation and bolstering its comprehensive competitiveness and allure (Wang, L et al, 2023). Thus, amidst the prevailing wave of digitization, policies supporting new R&D institutions stimulate and back enterprises to engage in innovative activities in a myriad of ways, thereby invigorating corporate innovation in cities.…”