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Can China's industrial policies enhance the green competitiveness of the manufacturing industry?

ABSTRACT: This study innovatively uses local government regulations related to manufacturing to quantitatively identify industrial policies. The degree of influence and functional mechanism of China's industrial policies on the green competitiveness of the manufacturing industry are empirically examined using the provincial and regional panel data. Additionally, the synergistic complementary effect between industrial policy power and market forces and the fiscal decentralization's role in influencing industrial policies are investigated. The results reveal that the promulgation and implementation of industrial policies have significantly promoted the green competitiveness of the manufacturing industry. Regarding functional mechanisms, environmental governance has played a positive role in promoting the green competitiveness of the manufacturing industry supported by industrial policies, resource allocation, and innovation incentives. Meanwhile, industrial policies on green competitiveness in manufacturing depend on marketization and fiscal decentralization in local governments. The above findings demonstrate that the local governments in China, a developing economy, can play the role of development-oriented governments. Based on conforming to market deepening and system optimization, they can formulate and implement industrial policies in a rational manner and achieve green development and upgrade the manufacturing industry.

SUBMITTER: Zhao Q

PROVIDER: S-EPMC8244902 | biostudies-literature |

REPOSITORIES: biostudies-literature

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Project description:As China's strategic support belt, the green development of industry in the Yangtze River Economic Zone is of great significance to promote the construction of China's ecological civilization, build a modern industrial system and accelerate high-quality economic development. The study of green total factor productivity of industry in the Yangtze River Economic Zone has important theoretical and practical value for exploring the green development path of China's industry. This Paper takes the Yangtze River Economic Zone, a key strategic region in China, as the research object, selects the input and output data of industrial production from 2006 to 2018, based on DEA model. To construct an MML index considering expected and unexpected output, and to quantitatively analyze the changes of industrial GTFP in the Yangtze River Economic Zone. The results show that: (1) During the sample period, the industrial green total factor productivity in the Yangtze River Economic Zone shows the spatial characteristics of differential growth and the temporal characteristics of volatile growth. It shows the fluctuation characteristics of "N" shape. (2) According to the order of "upper, middle, and lower" reaches, the spatial pattern of industrial green total factor productivity is characterized by "lower ladder". But the difference between the upper and middle reaches is small. (3) Cities with higher green total factor productivity and lower green total factor productivity each form the characteristics of "club convergence" of spatial agglomeration. (4) Technological efficiency and technological progress efficiency have heterogeneous effects on different river basins in the upper, middle, and lower reaches, and technological progress efficiency is conducive to promoting the evolution of green total factor productivity to a high level. According to the above empirical results, this paper finally puts forward the policy recommendations to improve the industrial green total factor productivity of the Yangtze River Economic Zone and the policy recommendations to reduce the industrial differences between the Yangtze River Economic Zone.

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Can China's industrial policies enhance the green competitiveness of the manufacturing industry?

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