Abstract
Marine industry continues to grow rapidly in China, while the contribution of the total factor productivity (TFP) to its gross output still remains very limited. Facing this issue, it is urgent to promote TFP by innovation, and Chinese government provides persistent subsidies to stimulate the innovation of relative enterprises. Taking listed companies of marine industry in Shanghai and Shenzhen Stock Markets (2007–2019) as samples, this study performed empirical tests by multiple regressions to check the effects of such subsidies on the TFP of Chinese marine industry. It was observed that, as a whole, government subsidies present positive effects on the TFP of associated companies, and subsidies beforehand yield higher promotion than subsidies afterwards. The subsidies work mainly via easing financing constraints and encouraging R&D investment of relative firms. Our results are highlighted by revealing the differential effects of government subsidies on the TFP of Chinese marine industry and their functional mechanism. It implies that, besides government subsidies, the optimization of financial market may also be helpful in promoting TFP by innovation.
Highlights
Until 2020, Chinese marine industry had continued to grow rapidly for decades
Its gross output reached a temporal peak as 8941.5 billion yuan in 2019, which accounts for 9% of the national gross domestic product (GDP) and 17% of the coastal provinces’ GDP
According to the classification standard of GB/T 20794–2006, Chinese marine economy is divided into two major categories of marine industry and marine-related industry. ey were further divided into different subcategories as shown in Table 1. e listed companies in Shanghai and Shenzhen Stock Markets involved in the above categories were selected as potential samples. ey were further verified one by one to ensure their main business scope
Summary
Until 2020, Chinese marine industry had continued to grow rapidly for decades. Ren et al [1] calculated the contribution rate of the total factor productivity (TFP) to the gross ocean product (GOP) in eleven Chinese coastal provinces, wherein the averaged growth rate was determined to fluctuate annually between −4.60% and 5.28% during 2006–2014. Such rates are far below the contemporaneous growth rates of marine industry. E promotion of marine industry’s TFP is in an urgent need [2] Such rates are far below the contemporaneous growth rates of marine industry. e promotion of marine industry’s TFP is in an urgent need [2]
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