Anti-corruption, marketisation and firm behaviours: evidence from firm innovation in China  

作　　者：Li Dang Ruilong Yang 

机构地区：[1]School of Economics at Renmin University of China,Beijing,China

出　　处：《Economic and Political Studies》2016年第1期39-61,共23页经济与政治研究（英文版）

基　　金：The authors would like to thank the support of the Outstanding Innovative Talents Cultivation Funded Programs 2015 of Renmin University of China.

摘　　要：China has launched an anti-corruption campaign since theEighteenth CPC National Congress, which has exerted widespreadinfluences on Chinese politics and economy. This paper examinesthe effect of the anti-corruption initiative on firm behaviours fromthe perspective of research and development (R&D) investments. Itshows that pursuing political connections and improving innovation are two mutually exclusive alternatives for firm growth inChina. The anti-corruption campaign raises the cost of seeking forpolitical bond and strengthens the incentive for firm innovation.After anti-corruption policies and regulations were issued, R&Dexpenditure in politically connected firms increases significantly;the anti-corruption initiative has positive effects on firm innovation.Further research shows that the effects vary with different types offirms. For state-owned enterprises (SOEs), the anti-corruptioninitiative only increases the R&D investments of firms with seniorexecutives who used to serve in the government;while for nonstate-owned enterprises (non-SOEs), this campaign has all-aroundpositive effects on their R&D investments. In the meantime, a heterogeneity at the provincial level is observed: R&D investments offirms with political connections increase more significantly in provinces with more intense anti-corruption efforts. Finally, marketisation also has a role to play. For regions with a more developedmarket economy, anti-corruption increases the innovation of firmswith political connections;whereas in regions with a less developed market economy, this effect is insignificant. This paper provides evidence for the opinion that anti-corruption is favourable toeconomic growth in China. To solve the endogeneity problem, ituses data obtained from the anti-corruption policy experimentsince the Eighteenth CPC National Congress and the difference-indifferences (DID) method to further test the hypotheses.

关 键 词：ANTI-CORRUPTION DID firm innovation political connections 

分 类 号：F42[经济管理—产业经济]