Abstract
In this study, a quasi-experiment of the special economic zones (SEZs) in China was conducted to explore whether green industrial parks play a role in enhancing local entrepreneurship. A household-level panel dataset of 9-year data across counties was built to compare the effects of green and non-green SEZs on the participation of local residents in entrepreneurial activities in a difference-in-differences (DID) setting. According to the empirical results, SEZs can promote local entrepreneurial activities, and such effects are more evident for green ones. An examination of the channels was conducted to reveal that SEZs have an entrepreneurial impact by reducing financial constraints, creating a connection between customers and suppliers, and spreading knowledge. Green SEZs were found to promote entrepreneurship mainly by reducing financial constraints and spreading knowledge.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Acs ZJ, Stam E, Audretsch DB, O’Connor A (2017) The lineages of the entrepreneurial ecosystem approach. Small Bus Econ 49(1):1–10. https://doi.org/10.1007/s11187-017-9864-8
Alvedalen J, Boschma R (2017) A critical review of entrepreneurial ecosystems research: towards a future research agenda. Eur Plan Stud 25(6):887–903. https://doi.org/10.1080/09654313.2017.1299694
Arora A, Belenzon S, Sheer L (2021) Knowledge spillovers and corporate investment in scientific research. Am Econ Rev 111(3):871–898. https://doi.org/10.1257/aer.20171742
Audretsch DB, Thurik AR (2000) Capitalism and democracy in the 21st century: from the managed to the entrepreneurial economy. J Evol Econ 10(1):17–34. https://doi.org/10.1007/s001910050003
Audretsch DB, Hülsbeck M, Lehmann EE (2012) Regional competitiveness, university spillovers, and entrepreneurial activity. Small Bus Econ 39(3):587–601. https://doi.org/10.1007/s11187-011-9332-9
Audretsch DB, Segarra A, Teruel M (2014) Why don’t all young firms invest in R&D? Small Bus Econ 43(4):751–766. https://doi.org/10.1007/s11187-014-9561-9
Austin B, Glaeser E, Summers LH (2018) Jobs for the heartland: place-based policies in 21st century America. Brook Pap Econ Act 8:151–232
Belitski M, Desai S (2016) Creativity, entrepreneurship and economic development: city-level evidence on creativity spillover of entrepreneurship. J Technol Transf 41(6):1354–1376. https://doi.org/10.1007/s10961-015-9446-3
Brahmbhatt, M., Haddaoui, C., & Page, J. (2017). Green Industrialisation and Entrepreneurship in Africa, Contributing paper for African Economic Outlook 2017: Entrepreneurship and Industrialisation, New Climate Economy, London and Washington, DC pp 1–60
Breschi S, Lissoni F, Malerba F (2003) Knowledge-relatedness in firm technological diversification. Res Policy 32(1):69–87. https://doi.org/10.1016/S0048-7333(02)00004-5
Canner G, Dynan K, Passmore W (2002) Mortgage Refinancing in 2001 and Early 2002. Fed Reserve Bull. https://doi.org/10.17016/bulletin.2002.88-12
Chaurey R (2017) Location-based tax incentives: evidence from India. J Public Econ 156:101–120. https://doi.org/10.1016/j.jpubeco.2016.08.013
Colombelli A, Quatraro F (2017) Green start-ups and local knowledge spillovers from clean and dirty technologies. Small Bus Econ 52(4):773–792. https://doi.org/10.1007/s11187-017-9934-y
Corradini C (2019) Location determinants of green technological entry: evidence from European regions. Small Bus Econ 52(4):845–858. https://doi.org/10.1007/s11187-017-9938-7
Demirel P, Parris S (2015) Access to finance for innovators in the UK’s environmental sector. Technol Anal Strateg Manag 27(7):782–808. https://doi.org/10.1080/09537325.2015.1019849
Demirel P, Li QC, Rentocchini F, Tamvada JP (2019) Born to be green: new insights into the economics and management of green entrepreneurship. Small Bus Econ 52(4):759–771. https://doi.org/10.1007/s11187-017-9933-z
Duranton, G., & Venables, A.J. (2018). Place-based policies for development. NBER Working Papers 24562.
Ellison G, Glaeser EL, Kerr WR (2010) What causes industry agglomeration? Evidence from coagglomeration patterns. Am Econo Rev 100(3):1195–1213. https://doi.org/10.1257/aer.100.3.1195
Evans DS, Jovanovic B (1989) An estimated model of entrepreneurial choice under liquidity constraints. J Polit Econ 97(4):808–827. https://doi.org/10.1086/261629
Fan Y, Bai B, Qiao Q, Kang P, Zhang Y, Guo J (2017) Study on eco-efficiency of industrial parks in China based on data envelopment analysis. J Environ Manage 192:107–115. https://doi.org/10.1016/j.jenvman.2017.01.048
Fujita M, Thisse JF (2003) Does geographical agglomeration foster economic growth? And who gains and loses from it? Jpn Econ Rev 54(2):121–145. https://doi.org/10.1111/1468-5876.00250
Glaeser EL, Kerr WR (2009) Local industrial conditions and entrepreneurship: how much of the spatial distribution can we explain? J Econo Manag Strateg 18(3):623–663. https://doi.org/10.1111/j.1530-9134.2009.00225.x
Glaeser EL, Rosenthal SS, Strange WC (2010) Urban economics and entrepreneurship. J Urban Econ 67(1):1–14. https://doi.org/10.1016/j.jue.2009.10.005
Glaeser, E. L., & Gottlieb, J. D. (2008). The economics of place-making policies (No. w14373). National Bureau of Economic Research. http://www.nber.org/papers/w14373
Harding JP, Stuart RS (2017) Homeownership, housing capital gains and self-employment. J Urban Econ 99:120–135. https://doi.org/10.1016/j.jue.2016.12.005
Henderson JV, Shalizi Z, Venables AJ (2001) Geography and development. J Econ Geogr 1(1):81–105. https://doi.org/10.1093/jeg/1.1.81
Jaffe AB, Newell RG, Stavins RN (2002) Environmental policy and technological change. Environ Resour Econ 22(1):41–70. https://doi.org/10.1023/A:1015519401088
Kline P, Moretti E (2014) People, places, and public policy: some simple welfare economics of local economic development programs. Annu Rev Econ 6(1):629–662. https://doi.org/10.1146/annurev-economics-080213-041024
Lu Y, Wang J, Zhu L (2019) Place-based policies, creation, and agglomeration economies: evidence from China’s economic zone program. Am Econ J Econ Pol 11(3):325–360. https://doi.org/10.1257/pol.20160272
Mazzucato M, Semieniuk G (2018) Financing renewable energy: who is financing what and why it matters. Technol Forecast Soc Chang 127:8–22. https://doi.org/10.1016/j.techfore.2017.05.021
Miao C, Fang D, Sun L, Luo Q, Yu Q (2017) Driving effect of technology innovation on energy utilization efficiency in strategic emerging industries. J Clean Prod 170:1177–1184. https://doi.org/10.1016/j.jclepro.2017.09.225
Neumark D, Simpson H (2015) Place-based policies. Handbook of regional and urban economics, vol 5. Elsevier, pp 1197–1287. https://doi.org/10.1016/B978-0-444-59531-7.00018-1
Rodrik D (2014) Green industrial policy. Oxf Rev Econ Policy 30(3):469–491. https://doi.org/10.1093/oxrep/gru025
Spigel B (2017) The relational organization of entrepreneurial ecosystems. Entrep Theory Pract 41(1):49–72. https://doi.org/10.1111/etap.12167
Stel AV, Carree M, Thurik R (2005) The effect of entrepreneurial activity on national economic growth. Small Business Econ 24(3):311–321. https://doi.org/10.1007/s11187-005-1996-6
Sun W, Wu J, Zheng S (2020) The consumption-driven effect of place-based industrial policy: an empirical study based on development zone policy. Soc Sci China 41(4):44–62. https://doi.org/10.1080/02529203.2020.1844427
Tian X, Xu J (2022) Do place-based policies promote local innovation and entrepreneurship? Review of Finance 26(3):595–635. https://doi.org/10.1093/rof/rfab029
Wang J (2013) The economic impact of special economic zones: evidence from Chinese municipalities. J Dev Econ 101:133–147. https://doi.org/10.1016/j.jdeveco.2012.10.009
Zeng DZ, Cheng L, Shi L, Luetkenhorst W (2021) China’s green transformation through eco-industrial parks. World Dev 140:105249. https://doi.org/10.1016/j.worlddev.2020.105249
Zheng S, Sun W, Wu J, Kahn ME (2017) The birth of edge cities in China: Measuring the effects of industrial parks policy. J Urban Econ 100:80–103. https://doi.org/10.1016/j.jue.2017.05.002
Acknowledgements
Wu thanks the National Key Research and Development Program of China (No. 2020YFA0608602) for its financial support. Sun is grateful to the National Natural Science Foundation of China (No. 71903210 & 72274228) and the Program for Innovation Research in Central University of Finance and Economics for the financial support. Wu also acknowledges funding from the National Natural Science Foundation of China (No. 72173030 & 72121002). We are grateful to Mulan Li for her excellent research assistance. All errors are our own.
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
Sun, W., Wu, J. & Yang, H. Increasing entrepreneurs through green industrial parks: evidence from special economic zones in China. Ann Reg Sci 72, 287–312 (2024). https://doi.org/10.1007/s00168-022-01200-3
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s00168-022-01200-3