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Quantitative Finance and Economics

2025, Volume 9, Issue 4: 810-831. doi: 10.3934/QFE.2025028
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Research article

Does policy finance promote domestic industrial gradient relocation? Evidence from China

  • 1.
    School of Science, Jiangxi University of Water Resources and Electric Power, Nanchang, China
  • 2.
    Key Laboratory of Engineering Mathematics and Advanced Computing, Jiangxi University of Water Resources and Electric Power, Nanchang, China
  • 3.
    School of Statistics and Data Science, Jiangxi University of Finance and Economics, Nanchang, China
  • 4.
    Department of Mathematics and Statistics, University of Calgary, Calgary, Canada
  • Published: 24 October 2025

  • JEL Codes: O18, R58, G28, L52

  • This study innovatively investigated whether policy finance can facilitate domestic industrial gradient relocation. Building on a theoretical framework and the formulation of research hypotheses, we utilized panel data from China's manufacturing industry across 30 provinces (2014–2023) to empirically examine both the direct effects and indirect mechanisms of policy finance on domestic industrial gradient relocation, while also conducting an analysis of industry heterogeneity. The results indicated that policy finance significantly promotes domestic industrial gradient relocation, a conclusion that holds robustly across multiple tests. Potential mechanisms through which policy finance exerts this effect include fostering industrial transformation, upgrading in high-gradient regions, and lowering business costs in low-gradient regions. Moreover, the impact of policy finance is markedly stronger in labor-intensive and capital-intensive industries compared with technology-intensive industries.

    Citation: Kang Zeng, Liangqing Luo, Hanqing Li. Does policy finance promote domestic industrial gradient relocation? Evidence from China[J]. Quantitative Finance and Economics, 2025, 9(4): 810-831. doi: 10.3934/QFE.2025028

    Related Papers:

  • This study innovatively investigated whether policy finance can facilitate domestic industrial gradient relocation. Building on a theoretical framework and the formulation of research hypotheses, we utilized panel data from China's manufacturing industry across 30 provinces (2014–2023) to empirically examine both the direct effects and indirect mechanisms of policy finance on domestic industrial gradient relocation, while also conducting an analysis of industry heterogeneity. The results indicated that policy finance significantly promotes domestic industrial gradient relocation, a conclusion that holds robustly across multiple tests. Potential mechanisms through which policy finance exerts this effect include fostering industrial transformation, upgrading in high-gradient regions, and lowering business costs in low-gradient regions. Moreover, the impact of policy finance is markedly stronger in labor-intensive and capital-intensive industries compared with technology-intensive industries.



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