Dynamic Effects Of Government Grants On Enterprises' Output And R&D Expenditure

Recently,the academia has made a lot of proofs and analyses of the effects and significant role of government subsidies on the output,scale and R&D of industries.However,how does the performance of government financial subsidies and preferential tax policies on strategic emerging industries? Furthermore,is it suitable for the strategic emerging industries segmentation?So we conduct a scientific study on these issues.This paper takes grouping comparison between the financial data of 285 Chinese A-share companies from 2007 to 2014,among which,99 strategic emerging industry companies are chosen as the target group,while other 186 A-share companies as the control group.And this research also take the whole strategic emerging industry and industry segmentation as the reference set to conduct dynamic and static panel data analyses on the financial subsidies and preferential tax policies.Panel Vector Auto Regression is adopted to study the dynamic relation among enterprise's output,innovation and government's fiscal subsidies,and quantify the influence degree and time-lag effects between them.This research may has some innovation points: Firstly,based on a four-sector endogenous growth model,this research mainly focus on the dynamic effects of government grants on enterprises' output and R&D expenditure in strategic emerging industries,and study discuss the differences between different policies of government grants.Secondly,PVAR model,which is widely used by many scholars,is applied to quantify the interaction relationship,impact and time lag between the variables.Then this paper makes a comparison between contribution rates of taxation reducing policies and government's fiscal subsidies from the view of dynamic analysis while domestic researches in this field are mostly experience summaries and theoretical discussions.At last,based on the horizontal cooperative analysis,the article adds the traditional industry as the contrast group and study the performance of government subsidy from a new perspective.At the same time,the text divides the seven sub-sectors of strategic emerging industry and measures the effects of financial subsidies and tax incentives on different sub-sectors according to the characteristics of each one.Through normative and empirical analysis,this paper provides a reference for policy makers and enterprise managers and makes a theoretical contribution to evaluation system of government grants.In conclusion,our government should formulate preferential tax policies and fiscal subsidies to support the development of strategic emerging industries in the suitable ways according to their own peculiarities.