Effects of intergovernmental fiscal transfers on technological innovation in China
ISSN: 1750-614X
Article publication date: 2 August 2024
Issue publication date: 16 January 2025
Abstract
Purpose
The purpose of this paper is to analyze whether and how intergovernmental fiscal transfers (IFTs) affect technological innovation.
Design/methodology/approach
China’s provincial panel data from 2007 to 2019 are used in an empirical study to examine the effect of IFTs on technological innovation and the role of fiscal spending policy in the relationship between the two by using the spatial Durbin model.
Findings
Results show an evident spatial correlation for the effect of IFTs on technological innovation, indicating that IFTs have a significant negative influence on technological innovation in local and surrounding regions. IFTs also inhibit technological innovation by negatively affecting science and technology spending and education spending.
Research limitations/implications
These findings can aid policymakers in advancing technological innovation by improving the system of fiscal transfers and optimizing the structure of fiscal spending.
Originality/value
Although the determinants of technological innovation have been analyzed, no studies have investigated the effect of IFTs on technological innovation. Thus, this paper aims to address this gap.
Keywords
Acknowledgements
This work is funded by the Basic Science (Natural Science) Research Project of Higher Education Institutions of Jiangsu Province (Grant No. 23KJB630007), and the Scientific Research Projects (Research Management Innovation Project) of Nanjing University of Finance and Economics (Grant No. XKYC3202312).
Citation
Liu, L., Lv, M. and Zhang, W. (2025), "Effects of intergovernmental fiscal transfers on technological innovation in China", Chinese Management Studies, Vol. 19 No. 2, pp. 397-415. https://doi.org/10.1108/CMS-11-2022-0397
Publisher
:Emerald Publishing Limited
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