Search Results (47)

As China enters a high-quality development stage, balancing economic growth and environmental sustainability is essential. Can industrial intelligence reconcile these goals? Using theoretical modeling, this paper integrates production decisions, pollution emissions, and environmental regulations to construct a micro-level analytical framework incorporating technology choice and emission reduction investment. It theoretically explores how robot adoption affects firms’ emission reduction behaviors and empirically tests the model using data from Chinese listed companies (2011–2022). Results indicate that industrial robots significantly reduce firms’ pollution emission intensity through productivity boost, technological progress, and emission reduction effects. Additionally, heterogeneity analyses show that robots have stronger pollution-reducing impacts in heavily polluting industries, state-owned enterprises, and regions with stringent environmental regulations. Therefore, policymakers should encourage robot adoption based on local contexts, formulate differentiated environmental regulations, and implement targeted strategies to maximize robots’ emission reduction potential. Accelerating green and intelligent transformation of enterprises will further align ecological protection with sustainable economic and social development. Full article

Promoting structural deleveraging is a key strategy for China to reduce high debt levels and mitigate systemic financial risks. In this context, the deleveraging of state-owned enterprises (SOEs) has become a national strategic priority. This study explores whether enhancing the quality of internal control as an internal governance mechanism can facilitate the deleveraging process of SOEs. Using a sample of A-share state-owned listed companies from the Shanghai and Shenzhen stock exchanges (2009–2023) and based on resource-based theory and signaling theory, we examine the impact and mechanisms through which internal control quality influences SOE leverage reduction. Our results demonstrate that higher internal control quality significantly promotes deleveraging in SOEs, and these findings remain robust after conducting endogeneity tests and employing alternative model specifications. Improved internal control mitigates resource misallocation and encourages firms to adopt two primary strategies: debt reduction (through short-term liability repayment and retained earnings) and equity expansion. However, the positive effect diminishes as Research and Development (R&D) intensity increases, reflecting the trade-off between innovation-driven growth and financial stability. Further heterogeneity analyses reveal that the deleveraging effect is more pronounced in local SOEs and over-indebted SOEs, as enhanced internal control helps eliminate non-performing liabilities. This study contributes to the literature on the economic consequences of internal control and provides empirical insights for policymakers seeking to optimize the capital structures of SOEs. Full article

Sustainable development is a tripartite game among the central (CG) and local governments (LGs) and enterprises, with economic factors as key drivers. China consumed about 16.2 million metric tons during this period, accounting for approximately 61% of global consumption, thereby reinforcing its position as the world’s leading copper consumer. Seeking a balance of acceptable interests among the three parties may be a feasible method to explore the sustainable development of China’s copper enterprises (CEs). Therefore, based on evolutionary game theory, we construct a three-party evolutionary game model. Using the financial data of Chinese CEs and actual survey data on the CG and LGs, we identified 31 environmental impact parameters from the CG, LGs, and CEs. Then, we used MATLAB R2023b to simulate an evolution model and determined the influence of various factors on the evolutionary stable state. The results show that LGs, as local managers, have implemented more direct and expedited regulations than the CG. Enterprises with less brand impact frequently face difficulties in complying with governmental regulatory demands. When interests are balanced, 30% of enterprises cannot meet standards within 40 months, which may cause 500 small and medium-sized enterprises to stop production, thus resulting in high unemployment costs for LGs. A scenario analysis evaluates the economic benefits of environmental measures based on evolutionary game results. The results show that the introduction of advanced hydrometallurgy technology has the highest economic benefits; after 5 years, the economic benefits of China’s entire copper industry will reach CNY 147.2 billion. Full article

In a highly volatile environment, strengthening resilience is essential for businesses to promote sustainable development, and environmental information disclosure (EID), as a crucial approach for companies to actively practice the concept of green development, has far-reaching impacts on the enhancement of corporate resilience (CR). To explore ways to efficiently enhance the sustainability of enterprises, this research, based on information asymmetry theory, investigates how EID affects CR, using data from China’s A-share-listed companies between 2011 and 2022. The study indicates that the effect of EID on CR was significantly positive at the 1% level. Mediation analysis suggests that this effect is facilitated by heightened investor attention and enhanced corporate innovation. Additionally, the positive impact is more pronounced for firms in high uncertainty environments, high levels of legalization, high levels of digital transformation, non-state-owned firms, small-scale firms, and firms in growth or decline. Based on this, EID is of great significance to enhance the resilience of enterprises, and policymakers, business managers, and investors should take into account their own development situation and the actual environment, and make scientific decisions according to local conditions. Full article

This paper takes the implementation of the River Chief System (RCS) as a case study representing government-led environmental governance policies. Based on the sample of 11,654 observations of Chinese A-share-listed companies spanning the years 2009 to 2021, it empirically examines the effect of the RCS on corporate Environmental, Social, and Governance (ESG) performance and the macro- and micro-mechanisms utilizing a staggered Difference-in-Differences (DID) model, controlling for companies’ financial and organizational structure characteristic variables, cities’ economic characteristic variables, and firm-year two-way fixed effects. The results indicate that the implementation of the RCS significantly enhances corporate ESG performance, a conclusion supported by various robustness checks such as the parallel trend test and placebo test. Further investigation reveals that implementing the RCS, at the micro level, boosts corporate green technology innovation, increases environmental protection investment, and, at the macro level, heightens public environmental attention, thus improving corporate ESG performance. Heterogeneity analysis finds that the RCS has a more pronounced impact on enhancing ESG performance for enterprises in central and western regions of China, state-owned enterprises, enterprises with political connections, and enterprises in mature and declining stages. These research findings of this paper provide valuable insights for local governments seeking to enhance the RCS, enrich environmental governance frameworks, and facilitate corporate green transformation. Full article

Work safety governance is a critical component of corporate ESG (Environmental, Social, and Governance) performance, particularly in high-risk industries. Effective safety supervision systems not only protect workers’ wellbeing, a key social metric in ESG frameworks, but also enhance corporate governance through improved risk management and regulatory compliance. The supervisory system represents a major institutional innovation in China’s approach to addressing increasingly complex work safety governance challenges. This study constructs an evolutionary game model involving the central government, local government, and high-risk enterprises to analyze the evolutionary characteristics of stakeholder behaviors. Through system simulation, we examine how key parameter changes affect the stability of system equilibrium points. Our findings reveal that (1) the current supervisory system effectively incentivizes both local governments to conduct safety supervision and high-risk enterprises to comply with safety investment requirements. (2) While government penalty levels do not affect strategy combinations, both insufficient and excessive penalties slow the system’s evolution toward optimal states. (3) Local governments tend to choose non-regulatory strategies when transfer payments and enterprise subsidies are inadequate. (4) Insufficient supervision intensity from the central government leads to local government non-regulation, and although this can be addressed by increasing supervision intensity, excessive supervision reduces the system’s evolution speed toward ideal states. Based on these findings, we propose policy recommendations for rational supervision intensity control, scientific reward–punishment mechanisms, and enhanced safety information transparency. This framework provides insights into the relationship between governance mechanisms and corporate long-term sustainability, which has been shown to improve ESG standards. Full article

The success of a cluster depends on the interplay between intra- and inter-regional collaboration, while empirical research on the mechanisms through which intra- and inter-regional collaborations trigger cluster growth is rarely focused. Based on the local buzz–global pipelines framework and incorporating an evolutionary perspective, we explore how intra- and inter-regional innovation networks can be integrated to drive the growth of emerging industries. We draw on Zhangjiang, China’s most advanced AI industry cluster, using social network analysis and qualitative methods, combining patent data with semi-structured interviews. The results indicate that with the return of multinational corporations and the limitation of Western technology, universities have become the primary source of AI innovation in Zhangjiang. The government has played a pivotal role in propelling the accelerated growth of China’s AI industry, particularly through the backing of pioneering AI private enterprises and the calibration of the potential inefficiencies associated with a state-led model with the dynamism of market forces. The ‘Buzz-and-pipeline’ dynamics in the AI innovation network are shaped by four processes: local networking, market demand, resource integration, and policy synergy. This underscores the intricate interconnections between the national and local scales in AI innovation networks. Full article

Environmental degradation and economic development have long been seen as incompatible, posing a pressing challenge for society. Government–business collaboration stands as an effective avenue for addressing environmental issues. This paper, using the 2007–2021 Low-Carbon City Pilot (LCCP) program in China as a quasi-natural experiment, explores the impact of governmental environmental regulations on corporate green innovation and examines the moderating role of government–business collusion. The findings indicate that the LCCP policy has effectively promoted corporate green technological innovation, with results remaining robust across various sensitivity tests. Heterogeneity analysis further reveals that the policy’s impact is more pronounced in the eastern regions, state-owned enterprises, and low-tech industries. Moreover, government–business collusion significantly undermines the benefits of green innovation, though this effect is partially alleviated when local government officials are replaced. Under the influence of government environmental regulation, green innovation fosters the sustainable development of enterprises. However, the formation of collusion between government and business diminishes the incentive for companies to take on environmental and social responsibilities. The study enriches the existing literature on environmental policy factors and offers both theoretical and practical insights for the government in formulating relevant environmental policies and promoting corporate green innovation. Full article

The economic governance capacity of local government in China is instrumental in fostering tourism development quality and sustainability from the aspects of leading resource allocation, maintaining market fairness, and promoting enterprise innovation, yet this important aspect has received limited attention in present research. China’s tourism development quality is evaluated in five dimensions in this study: innovation, greenness, coordination, openness, and sharing. Employing a fixed-effects model with data from 2000 to 2019 for 30 Chinese provinces, the paper empirically tests the influence of government economic governance capacity on the tourism development quality. Our findings reveal several key insights: (1) The economic governance capacity of the government significantly contributes to enhancing the tourism development quality. (2) It is shown in the regression results of the sub-indexes of the government’s economic governance capacity and tourism development quality that the innovative development and green development of the tourism industry can be accelerated strongly by the government’s economic governance capacity, while tourism development quality can be improved significantly by the development of non-state-owned economy, the development of factor market, the development of market intermediary organizations, and the legal system. (3) It is shown in mechanism analysis that the government’s economic governance capacity can stipulate regional competition, industrial structure upgrading, improve the level of informatization, and eventually improve tourism development quality. This comprehensive analysis sheds light on the intricate relationship between local government economic governance capacity and tourism development quality, offering a novel research perspective and valuable reference points for policymakers and scholars engaged in the analysis and construction of sustainable tourism development strategies. Full article

The 2015 reform of state-owned forest regions (SOFRs) in Northeast China required state-owned forest enterprises (SOFEs) to transfer their governmental and social roles to local authorities. This transition, however, created fragmented governance within forestry communities due to the absence of cooperative mechanisms between SOFEs and local governments. This study examines the economic effects of this governance fragmentation on SOFEs and explores the underlying mechanisms. The research combines new institutional economics and transaction cost theory to develop hypotheses and employs empirical analysis using fixed-effects models on data from 39 SOFEs, belonging to two forest industry groups from 2015 to 2022, collected through surveys and field investigations. The findings indicate that governance fragmentation has a significant negative impact on the economic performance of SOFEs. The high transaction costs incurred by SOFEs in achieving community co-governance with local governments are identified as a key mediating mechanism. These costs lead to resource dispersion and diminished trust between SOFEs and local governments. The economic impact of this governance fragmentation varies based on the economic conditions of the SOFEs, their operational scales, and the clarity of geographical management boundaries with local governments. To mitigate the adverse effects of governance fragmentation, the study suggests proactive institutional designs to reduce transaction costs. These findings offer new insights into the corporate social responsibilities of Chinese SOFEs and suggest improvements in the governance structures of forestry communities in SOFRs in Northeast China. Additionally, the study expands the application of transaction cost theory in public affairs governance and enhances quantitative research on the economic impact on enterprises. Full article

In the era of the digital economy, it has become an inevitable trend for manufacturing enterprises to establish industrial Internet platforms toward achieving transformation and innovative development. However, the current development model of industrial Internet platforms is still imperfect, wherein the application scenario is complex, the investment cost is too high, the return-on-investment cycle is too long, and other factors have hindered the willingness of manufacturing enterprises to employ cloud services and capital investment. For this reason, governments have introduced a series of relevant incentive policies to promote the development of industrial Internet platforms and the transformation and upgrading of manufacturing enterprises. Considering the role of government incentives, this study first constructs an evolutionary game model with local governments, manufacturing enterprises, and industrial Internet platforms as the main players. Then, the dynamic change process of each game player’s strategy choice and the stable state of the system evolution under multiple scenarios are analyzed, and the validity of the conclusions is verified through a numerical simulation analysis. Finally, the statistical data of 28 provinces in China from 2018 to 2020 are used to conduct an empirical test to explore the impact of the industrial Internet on the transformation and innovation development of the manufacturing industry and the role of government incentives. The results show that the development of the industrial Internet has a significant role in promoting the innovation and development of the manufacturing industry; government incentives can promote the innovation and development of the industrial Internet and manufacturing industry, but incentives should not be too generous; and the impact of developing the industrial Internet on the level of innovation input/output of the manufacturing industry shows obvious regional differences. This study takes the local government as an independent game participant into consideration, which enriches the research field of combining evolutionary game theory with the transformation and innovative development of the manufacturing industry. In addition, this study provides theoretical guidance and practical references for the government to formulate incentive policies to promote the development of industrial Internet platforms and for manufacturing enterprises to utilize these platforms to carry out innovation and perform upgrades. Full article

This paper proposes a two-party evolutionary game model of government and enterprise to solve the dilemma of industrial pollution control and explore the mode of government and enterprise collaborative governance. The local equilibrium points of the game model in four cases are calculated and analyzed, and the results show that government power alone cannot help enterprises achieve an ideal level of pollution reduction, and it is necessary to introduce public power for supervision. Based on the above, a tripartite evolutionary game model comprising the government, the public, and the enterprise is proposed. When the costs and benefits of the tripartite game players meet certain conditions, the system will evolve to a state of equilibrium (0,1,1). Following the current situation of economic development in China, the parameters of the two-party and tripartite evolutionary game are assigned, and the operating path and system’s evolution trajectory of the two-party and tripartite industrial pollution control are simulated by Matlab R2016a software. It is indicated that whether the government participates in supervision or not, an enterprise will actively control pollution under strong public supervision, which can provide feasible suggestions for the selection of industrial pollution control policies. Full article

Since its reform and opening-up, the scale of China’s utilization of foreign direct investment (FDI) has been expanding. Meanwhile, the “Belt and Road” initiative has opened up broader markets and trade opportunities for China. As a pillar industry supported by the state, the high-tech industry has also become an industry with more foreign investment. Therefore, based on the data of China’s high-tech industry from 2012 to 2021, this paper analyzes the technology spillover effect of foreign direct investment on the high-tech industry in the whole country as well as in the east, west, and northeast regions by using the C-D production function. The results show that in the eastern region, FDI has a positive spillover effect on the output and technological innovation of the high-tech industry; compared with the eastern region, FDI in the central and western regions inhibits technological innovation but has a positive effect on the output of the high-tech industry; in the northeastern region, FDI hampers the output of the high-tech industry but promotes the enhancement of the technological innovation capacity. The reason for this is that FDI is unevenly distributed in each region of China, and the absorption capacity of high-tech enterprises in each region is different from that of foreign direct investment. Finally, against the background of “Belt and Road”, this paper puts forward policy suggestions in light of the actual development situation of each region. China should strengthen the supervision of FDI to ensure the sustainability of foreign investment. All regions should give full play to their comparative advantages and deal with the balanced development of FDI and local factor inputs to realize the coordinated development of China’s regional economy. Full article

The Hengduan Mountains in China are known for their complex geological environment, which leads to frequent geological disasters that pose significant threats to the safety and economic and social development of the local population. In this study, we developed develop a multi-dimensional evaluation index system from the aspects of economy, society, ecology, and infrastructure, and the resilience inference measurement (RIM) model was developed to assess resilience to regional disasters. The clustering evaluation of exposure, damage, and recovery variables in four states was conducted by way of K-means clustering. The results of K-means clustering are confirmed by discriminant analysis, and the disaster resilience index was empirically verified once. At the same time, the obstacle factor was further analyzed with the obstacle degree model. The results indicate that there are 8 susceptible areas, 23 recovering areas, 27 resistant areas, and 7 usurper areas. The classification accuracy of the model is 95.4%. The disaster resilience of high-risk areas was found to be low, with “extremely poor” differentiation, where the majority of the areas had low resilience and only a minority had high resilience. A “high in the southeast and low in the northwest” spatial distribution was observed. High-resilience areas were “dotted” and mainly concentrated in core areas with a high population density and strong economic activity, while low-resilience areas had a pattern of “edge extension” and were mainly distributed in the transition zone between the Qinghai–Tibet and Yunnan Plateaus. There were clear differences in the barriers of disaster resilience among the 65 counties (cities). The economic barrier degree was found to be the largest barrier to disaster resilience, followed by ecological, social, and infrastructure barrier degrees. The main factors affecting the distribution of disaster resilience in the high-risk areas were topographic relief, proportion of female population, cultivated land area, industrial structure, number of industrial enterprises above a designated size, and drainage pipeline density in the built-up area. Additionally, primary barrier factors classify the 65 counties (cities) into three types: economic constraint, natural environment constraint, and population structure constraint. Full article

The ongoing expansion of local government debt (LGD) in China constitutes a significant impediment to economic development, while the existing literature predominantly concentrates on macro-level investigations, neglecting the repercussions of government debt expansion on firms. Firms serve as fundamental constituents of the real economy, and the suitability of their investment structure is a pivotal determinant of their robust development. Therefore, it is of great significance to investigate whether the investment structure of non-financial firms will undergo deviations attributable to the expansion of local government debt. This paper uses a two-way fixed-effects model to examine the causal effect of local government debt on firms’ investment structures. The quasi-natural experiment using the DID model with “Document 43” issued by China on local government debt governance as a policy shock can be a good endogeneity test. It is found that local government debt exacerbates the trend of “exit from real to virtual” of enterprises, leading to a bias towards financial investment in the investment structure of enterprises, and this result is still robust after a series of robustness tests. A heterogeneity analysis shows that the impact of LGD on the investment structure of firms mainly exists in non-state-owned firms, small-scale firms, and firms with high financing constraints. Overall, this study provides new evidence on how the government influences the investment structure of Chinese firms through the perspective of LGD, which helps firms to prevent and cope with the risks associated with LGD. Furthermore, it offers practical references and policy insights for government initiatives in the realm of local debt governance. Full article