How does China’s resource tax law affect resource-based firms’ total factor productivity?

Using panel data of A-shares during 2017–2022 and the difference-in-differences approach, this study investigates the effect of China’s resource tax law (RTL) on firms’ total factor productivity (TFP). The benchmark and robustness tests demonstrate a significant promotional impact of RTL on resource...

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Bibliographic Details
Main Authors: Yu He, Xiaoqi Zhang, Xingyan Zhang
Format: Article
Language:English
Published: Elsevier 2024-12-01
Series:Sustainable Futures
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Online Access:http://www.sciencedirect.com/science/article/pii/S266618882400248X
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Summary:Using panel data of A-shares during 2017–2022 and the difference-in-differences approach, this study investigates the effect of China’s resource tax law (RTL) on firms’ total factor productivity (TFP). The benchmark and robustness tests demonstrate a significant promotional impact of RTL on resource-based firm TFP. Besides, quantile analysis reveals that the RTL positively affects firms with higher initial TFP levels more than those with lower levels. The RTL’s effect on firms’ TFP emerges (becomes stronger) only if research and development investments (government subsidies) reach a certain value. Heterogeneity analyses show that the RTL has various impacts on different types of firms.
ISSN:2666-1888