Eurasian Business Review

, Volume 5, Issue 1, pp 73–98 | Cite as

Credit depth, government intervention and innovation in China: evidence from the provincial data

  • Aoife Hanley
  • Wan-Hsin LiuEmail author
  • Andrea Vaona
Original Paper


This paper investigates the role of regional credit systems for Chinese regional innovation, using data for the period 2000–2008. Both the effects of credit depth and government intervention are investigated. Results show that regional credit depth has a significantly positive effect on regional innovation performance. Credit depth has more marked impacts on major innovations (i.e., invention patents) than on less complicated innovations (i.e., utility model and external design patents). Additionally, our results do not suggest a reduction in the efficiency of regional innovation from increased government intervention via state-owned commercial banks.


Regional credit system FDI Regional innovation China 


G20 O30 O53 R10 



We would like to thank Michaela Rank for her excellent research and technical assistance. Liu would also like to thank the German Research Foundation (DFG) for its financial support of the cooperative project Regional Agility and Upgrading in Hong Kong and the PRD (Priority Program 1233: Megacities—Megachallenge: Informal Dynamics of Global Change). Finally, we would like to thank participants of the 14th Uddevalla Symposium 2011 at the University of Bergamo and participants of the 2011 ZEW workshop on ‘Economics of Information and Patenting’ in Mannheim for constructive comments. This paper was also presented as a guest lectures in the PhD Programme in Economics and Management at the University of Trento in February 2012 and in the MA in Business Management of the Department of Economic and Social Sciences at the Catholic University of Piacenza in May 2014. We thank for the lecture participants’ useful feedback as well.


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Copyright information

© Eurasia Business and Economics Society 2015

Authors and Affiliations

  1. 1.Department of EconomicsChristian-Albrechts-University of KielKielGermany
  2. 2.Kiel Institute for the World EconomyKielGermany
  3. 3.Department of Economic SciencesUniversity of VeronaVeronaItaly

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