Gains from Targeting? Government Subsidies and Firm Performance in China
研究了中国进口资本品补贴计划对企业的影响，发现获得补贴的企业借贷增加、利率降低，进而扩大投资、提高产出和出口，尤其对非国有和小企业效果显著。
We estimate the financial and real effects of a subsidy program on imported capital goods recently implemented in China. We identify firms that have access to the subsidy program by combining data on catalogues of eligible products periodically released by the government and product-level import data. Our findings demonstrate that following the implementation of the program, eligible firms experience an increase in borrowing and gain access to loans at lower interest rates compared to non-eligible firms. This improved financial situation enables them to expand their fixed-asset investments, increase total output, and enhance their export performance. The expansion of production capacity also leads to improved investment efficiency and greater profitability. Further analysis reveals that the effects of the policy are particularly pronounced for non-state-owned enterprises and small firms in relatively competitive industries. This finding suggests that these firms face ex-ante financial constraints, and their marginal rate of return to capital is large.