Abstract
Employing World Bank's survey data on the Chinese business environment, we empirically investigate the role of industrial agglomeration in moderating the effect of rent-seeking in bank credit on firm R&D innovation. The results show that rent-seeking in bank credit impedes firm R&D innovation, while industrial agglomeration corrects this impeding effect, which is also robust when considering endogenous problems. Furthermore, the results show that the moderating role of industrial agglomeration in correcting the negative effect of rent-seeking in bank credit on firm R&D innovation is more prominent for SMEs, non-state firms, and firms with more severe financial constraints. These findings suggest that the spatial agglomeration of industries can effectively alleviate the suppression effect of rent-seeking in credit corruption on firm R&D innovation, highlighting ways to promote firm R&D innovation in China's financially repressive environment.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
