Fiscal-Financial Policy Coordination and Green Innovation among SMEs: Quasi-Natural Evidence from Government Procurement Contract Loans in China
DOI:
https://doi.org/10.54097/wd2th698Keywords:
government procurement contract loans, green innovation, financing constraints, fiscal-financial policy coordination.Abstract
Driven by China's dual-carbon goals, easing the resource constraints faced by small and medium-sized enterprises (SMEs) in green innovation and strengthening their internal incentives for such innovation have become important policy issues. Using firms listed on China's STAR Market and ChiNext Board from 2011 to 2024, this study treats the implementation of government procurement contract loan policies as a quasi-natural experiment and estimates a staggered difference-in-differences model to examine the relationship between fiscal-financial policy coordination and SME green innovation. The results show that government procurement contract loans significantly promote green innovation among SMEs. Mechanism tests indicate that the policy operates mainly by alleviating financing constraints, increasing firms' environmental attention, and strengthening external monitoring. Heterogeneity analysis further shows that policy responses are stronger among firms facing higher peer pressure, firms located in regions with heavier local government debt, and firms in the maturity stage of their life cycle. Additional tests suggest that the policy primarily increases the quantity, rather than the quality, of green innovation. This study provides new evidence on the applicability of resource dependence theory in China and offers practical implications for improving fiscal-financial coordination systems.
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