Industrial Policy,Corporate Performance And Regional Institutional Environment

At the end of 1980s,China began to implement industrial policies and gradually became a big country in implementing industrial policies.Industrial policies exist widely in many industries for various reasons.As the "hand of support" in the process of industrial policy implementation,the role of local government is particularly important.In view of the economic background of China's transition,the central government will make clear which industries to encourage or focus on in the next five years,based on the current economic level and future development planning,in order to balance regional development and adjust the industrial layout.In order to stimulate regional economic vitality and achieve the political performance of officials,local governments often provide subsidies or loans for local companies involved in industrial policy incentives or key support areas on the basis of Central Industrial policy.Compared with other developed countries,industrial policies are used more frequently in China.In order to achieve certain economic and social goals,the government first formulates relevant industrial policy planning,and then uses various means to guide the re-allocation of various resources according to the planning objectives.For a long time,industrial policy has played an important guiding role in remedying market defects,allocating resources effectively and achieving sustained and stable economic growth in China.The new normal is a new feature of China's economic development.Under the new normal,the economic situation is more complex.At this time,the government's ideas and ways of macro-control need to be more accurate and effective.The implementation of industrial policy has an important impact on inter-industry resource allocation,but the effect of industrial policy has been difficult to reach a conclusion.Before the government formulates the new industrial policy,it is necessary to objectively evaluate the effect of the existing industrial policy.Therefore,the evaluation of the actual effect of existing industrial policies has become an urgent empirical issue in the current work of industrial restructuring in China.As one of the important factors affecting resource allocation,industrial policy has been studied in the literature.However,most of the studies focus on the impact of industrial policies on macro-economy,less on the relationship between industrial policies and micro-enterprise behavior and regional institutional environment.This paper constructs an empirical model to test,and finds that industrial policy can improve enterprise performance,and regional institutional environment has a regulatory role.In areas with good institutional environment,the relationship between industrial policy and enterprise performance is more significant.At the same time,we distinguish the nature of equity in the further test,and find that the regulatory role of regional institutional environment is more significant in private enterprises.The main significance of this paper is as follows:(1)Most of the previous papers on the effectiveness of industrial policies have examined the impact of industrial policies on economic growth from macro level,but the final destination of industrial policies is in various micro-enterprises.This paper examines the micro-economic consequences of industrial policies in China from the perspective of corporate performance,which provides a more objective test for the implementation effect of industrial policies in China.Evidence.(2)The promotion of industrial policy to the economy will be affected by the regional institutional envirornment.This paper introduces this factor into the impact of industrial policy on the micro-behavior of enterprises,examines the relationship between the effectiveness of industrial policy and the regional institutional environment,and the effect of regional industrial policy with good institutional environment is more remarkable.