The price of property rights: Institutions, finance, and economic growth

Alquist, Ron; Chabot, Ben; Yamarthy, Ram

doi:10.1016/j.jinteco.2022.103594

Cited by 12 publications

(5 citation statements)

References 51 publications

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“…The results show that local environmental legislation significantly reduces the employment growth of Chinese manufacturing firms, and the impact is relatively small, on the order of 3.07%, which is very close to the results of Liu et al ( 2017 ). However, this finding differs greatly from some existing studies on the economic effects of institutional reform, which state that institutional reforms, such as the protection of intellectual property rights, the establishment of financial market and the clarity of ownership, provide the necessary incentives to accumulate human and physical capital and improve the resource allocation efficiency, and thus can boost economic growth and labor demand (Alquist et al, 2022 ; Coccia, 2019 ; Lepore et al, 2018 ). One possible explanation for this difference is that China's environmental legislation mainly emphasizes the sharing of obligations.…”

Section: Discussioncontrasting

confidence: 65%

Local environmental legislation and employment growth: evidence from Chinese manufacturing firms

Wen

Bian

2023

Environ Dev Sustain

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In China, there exists a huge debate for a long time on whether a double dividend, reducing pollution emissions and boosting employment, can be achieved by intensifying environmental regulations. In this paper, we use two data sets on provincial environmental legislation and Chinese manufacturing firms during 1998–2013, to estimate the impact of provincial environmental legislation on the firms’ employment growth with a difference-in-difference (DID) model. Results showed that (1) after the implementation of environmental legislation, the employment growth of regulated manufacturing firms decreases significantly by 3.07%, and this result is robust to alternative tests. (2) Local environmental legislation reduces employment growth mainly via the influencing mechanism of the firm’s entry and exit, export, and innovation. (3) The local environmental legislation has heterogeneous impacts on employment growth in different industries and different regions, and the estimated effect is more obvious in high-pollution industries and areas with strong enforcement. (4) Environmental legislation significantly improves job destruction and reduces job creation, resulting in a − 3.86% job net increase. Due to the long-term implementation of extensive economic growth mode, China’s ecological environment has been deteriorating since the 1990s, and environmental pollution has attracted more and more social attention. Until 2013, the Communist Party of China put forward 'ecological civilization', and building a beautiful new China with harmonious coexistence between man and nature has become an important development strategy. Meanwhile, starting from the implementation of the Two-Control-Zone policy in 1998, China has implemented numerous environmental policies in just ten years. These environmental policies have greatly improved the quality of China’s ecological environment, but their economic effects have been controversial. Given the special historical period, this paper helps assess the impact of Chinese environmental policies on employment and provides a more objective policy evaluation and implications for improving existing laws and regulations to achieve higher social welfare. To achieve this goal of balancing the improvement of the ecological environment and high employment level, environmental policies firstly should be flexible to ensure that the environmental standards follow the firm’s characteristics and regional characteristics to avoid "one size fits all". Particularly, for regions with poor economic development or having a single industrial structure, the implementation cycle of the environmental policies should be extended to ensure that they have enough time to achieve industrial restructuring and complete the environmental protection goals. Secondly, we find that environmental legislation hurts employment growth by limiting export decisions, so the government should use multiple channels to stabilize export when implementing environmental legislation. Thirdly, technological R&D and innovation play an import...

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Section: Discussioncontrasting

confidence: 65%

Local environmental legislation and employment growth: evidence from Chinese manufacturing firms

Wen

Bian

2023

Environ Dev Sustain

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“…Overall, this demonstrates that tax policy is more steering than subsidizing. The variables of access to investment and credit slack both produced negative regression results, emphasizing the financing environment's positive effect on firms' innovation efficiency (Alquist et al, 2022;Cull & Xu, 2005;Ribeiro & Shapira, 2020). Access to capital is an important factor in reducing firms' barriers to innovating, and financing institutions increase innovation effectiveness by reducing firms' costs of innovation while monitoring innovation-related actions of innovation agents (Long & Pelloni, 2017;Ribeiro & Shapira, 2020).…”

Section: Analysis Of Results Based On Sfa Modelmentioning

confidence: 99%

Digitalization of the Business Environment and Innovation Efficiency of Chinese ICT Firms

Ding

Liu

Wang

et al. 2023

Journal of Organizational and End User Computing

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This study investigates how the digital business environment affects firms' innovation input variables. It was discovered that digitization leads to ongoing corporate environment optimization, which improves the effectiveness of innovation. One of the institutional environment factors, digitalization, increases the redundancy of government subsidies on businesses' investments in innovation. It also helps to eliminate duplication in innovation investment through the financial environment and the protection of legal rights. With increasing marketization in the informal institutional framework, the degree of R&D investment redundancy lowers while R&D human resource investment redundancy grows. Digitization not only lowers the grade of innovation, but it also has a negative association with the duplicate nature of commercial R&D investments. The authors' research combines institutional environment theory and digital development to establish a new empirical foundation for corporate development in order to boost innovation efficiency.

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“…Another factor which might explain the relative performance of the countries was their institutional setup. Recent work has highlighted the importance of the quality of institutions for growth and development through asset prices; see Alquist et al (2020). As previously stated, three of the four countries were effectively independent states with the Treaty of Berlin in 1878, 17 and they continued a process of nation building that started prior to independence.…”

Section: IIImentioning

confidence: 99%

‘Propitious contrast’: Romanian borrowing in a Balkan mirror, 1878–1913

Maerean

Pedersen

Sharp

2022

Financial History Review

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How was Romania able to borrow cheaply on the international capital markets before World War I? We explore this within the context of its three southeast European neighbours, Bulgaria, Greece and Serbia, using a novel dataset of monthly bond prices from the Berlin and London stock exchanges. A comparison of country characteristics and panel data analysis suggests that Romania was able to borrow under more favourable conditions due to its abundant natural resources and desirable exports.

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The price of property rights: Institutions, finance, and economic growth

Cited by 12 publications

References 51 publications

Local environmental legislation and employment growth: evidence from Chinese manufacturing firms

Local environmental legislation and employment growth: evidence from Chinese manufacturing firms

Digitalization of the Business Environment and Innovation Efficiency of Chinese ICT Firms

‘Propitious contrast’: Romanian borrowing in a Balkan mirror, 1878–1913

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