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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Main Authors: Yu He, Xiaoqi Zhang, Xingyan Zhang
Format: Article
Language:English
Published: Elsevier 2024-12-01
Series:Sustainable Futures
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S266618882400248X
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author Yu He
Xiaoqi Zhang
Xingyan Zhang
author_facet Yu He
Xiaoqi Zhang
Xingyan Zhang
author_sort Yu He
collection DOAJ
description 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.
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institution Kabale University
issn 2666-1888
language English
publishDate 2024-12-01
publisher Elsevier
record_format Article
series Sustainable Futures
spelling doaj-art-73ab25bd975d4208b2aba7ce4e6ed0b42024-12-18T08:52:55ZengElsevierSustainable Futures2666-18882024-12-018100400How does China’s resource tax law affect resource-based firms’ total factor productivity?Yu He0Xiaoqi Zhang1Xingyan Zhang2School of Finance, Chongqing Technology and Business University. 19 Xuefu Road, Nan'an District, Chongqing, 400067, ChinaSchool of Finance, Chongqing Technology and Business University. 19 Xuefu Road, Nan'an District, Chongqing, 400067, ChinaCorresponding author.; School of Finance, Chongqing Technology and Business University. 19 Xuefu Road, Nan'an District, Chongqing, 400067, ChinaUsing 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.http://www.sciencedirect.com/science/article/pii/S266618882400248XDifference-in-differences approachThreshold effect analysisTotal factor productivityResource tax lawResearch and development investments
spellingShingle Yu He
Xiaoqi Zhang
Xingyan Zhang
How does China’s resource tax law affect resource-based firms’ total factor productivity?
Sustainable Futures
Difference-in-differences approach
Threshold effect analysis
Total factor productivity
Resource tax law
Research and development investments
title How does China’s resource tax law affect resource-based firms’ total factor productivity?
title_full How does China’s resource tax law affect resource-based firms’ total factor productivity?
title_fullStr How does China’s resource tax law affect resource-based firms’ total factor productivity?
title_full_unstemmed How does China’s resource tax law affect resource-based firms’ total factor productivity?
title_short How does China’s resource tax law affect resource-based firms’ total factor productivity?
title_sort how does china s resource tax law affect resource based firms total factor productivity
topic Difference-in-differences approach
Threshold effect analysis
Total factor productivity
Resource tax law
Research and development investments
url http://www.sciencedirect.com/science/article/pii/S266618882400248X
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