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- W2990395363 abstract "Governments are important financiers of private sector innovation. While these public funds can ease capital constraints and information asymmetries, they can also introduce political distortions. We empirically explore these issues for China, where a quarter of firms’ R&D expenditures come from government subsidies. Using a difference-in-differences approach, we find that the anti-corruption campaign that began in 2012 and the departures of local government officials responsible for innovation programs strengthened the relationship between firms’ historical innovative efficiency and subsequent subsidy awards and depressed the influence of their corruption-related expenditures. We also examine the impact of these changes: subsidies became significantly positively associated with future innovation after the anti-corruption campaign and the departure of government innovation officials. This is the Appendix to the paper available at https://ssrn.com/abstract=3251449." @default.
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- W2990395363 date "2018-01-01" @default.
- W2990395363 modified "2023-09-23" @default.
- W2990395363 title "Corruption, Government Subsidies, and Innovation: Evidence from China - Internet Appendix" @default.
- W2990395363 doi "https://doi.org/10.2139/ssrn.3251843" @default.
- W2990395363 hasPublicationYear "2018" @default.
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