Publications
"Environmental Regulation and Firm Markup: Evidence from SO2 Reduction Policy in China", with Ruohao Zhang, Empirical Economics 69, 3293–3335 (2025), https://doi.org/10.1007/s00181-025-02819-9
"Digital Level Improvement and Enterprise Innovation—Empirical Evidence from A-Share Listed Companies in Shanghai and Shenzhen"[J]. Finance & Economics of Xinjiang, 2024, 0(6): 57-67. DOI:10.16716/j.cnki.65-1030/f.2024.06.006.
Working papers
"How does digital transformation affect enterprise innovation in China?", with Weijie Luo, Revise and Resubmit
Abstract. Despite widespread recognition of digital transformation's strategic importance for enterprise innovation, the underlying transmission mechanisms and heterogeneous treatment effects across different firm characteristics and regional contexts remain insufficiently explored. This study addresses this research gap by analyzing a panel dataset of over 5,000 A-share listed companies (approximately 55,000 firm-year observations) from 2007-2024. Using text mining to construct digital transformation indices, we employ panel fixed-effects regressions to examine the causal relationship. The results indicate that digital transformation significantly boosts firms’ innovation output by improving the structure of human capital and easing financing constraints. Its impact is especially pronounced among smaller firms, those located in densely populated areas, and firms operating in provinces with higher marketization levels, particularly in eastern China. Moreover, digital transformation stimulates AI-related investment, which further strengthens firms’ innovative capabilities. The effects are more substantial for invention patents than for utility models, suggesting a shift toward more technology-intensive innovation. Finally, complementary analysis shows that digital transformation raises the productivity of R&D, enabling firms to generate greater innovation output from a given level of R&D effort. These findings provide critical insights for accelerating digital economy development and supporting enterprises in cultivating new quality productive forces.
"Market Size, Heterogeneity, and the Effects of Environmental Regulation", with Weijie Luo, Under Review
Abstract. This paper examines how market size and firm heterogeneity shape the effects of environmental regulation on firm activity. Using cross-country data for 2000–2022, we find that stricter regulation reduces the supply of skilled labor, with stronger impacts in smaller economies and weaker impacts in larger ones. To interpret these results, we develop a spatial model with firm heterogeneity and emissions treated as a negative externality. Model simulations indicate that market size and heterogeneity condition how environmental policy translates into firm entry, which determined by local stock of skilled labors. In larger markets, the marginal effect of emission taxes on the productivity cutoff is less pronounced, so regulation bites harder in smaller economies but more weakly in larger ones. Heterogeneity also matters. Greater evenness cushions the impact of regulation by increasing the likelihood of highly productive entrants, while greater richness adds many low-productivity firms that regulation quickly eliminates. These findings highlight that the effectiveness of regulation depends not only on its design but also on market size and the distribution of firm productivity.
"Trade and Toxics: U.S. Industrial Emissions in Response to Chinese Import Competition", with Weijie Luo, Under Review
Abstract. This paper provides empirical evidence on how pollution emissions in the United States responded to the import competition from China. Using data from the EPA’s Risk-Screening Environmental Indicators (RSEI), we examine the impact of Chinese import competition on U.S. environmental performance at the industry level. The results show that Chinese import competition led to reductions of approximately 24.5 million and 53.1 million pounds of emissions during the periods 1990–1999 and 1999–2007, respectively. Correspondingly, hazard levels declined by 0.517 trillion and 1.681 trillion units over the same two subperiods. We also find significant increases in emissions and hazard per employee, but no impact on emissions or hazard per establishment—suggesting that overall reductions were driven by industry contraction rather than cleaner production.
"Economic Policy Uncertainty and the Internationalization of Chinese Cultural Enterprises", with Weijie Luo, Under Review
Abstract. This paper examines how economic policy uncertainty (EPU) influences the internationalization of Chinese cultural enterprises. Using a panel data of China's listed cultural firms and a constructed EPU index over 2003-2022, we find that greater uncertainty significantly promotes internationalization, as firms seek to hedge risks and capture new growth opportunities abroad. State-owned enterprises respond less strongly than private firms, reflecting their closer ties to government and more conservative strategies. Digital transformation and financing constraint further enhance the positive role of EPU. This paper contributes to the literature on policy uncertainty and firm strategy, highlighting how cultural enterprises adapt to uncertain domestic environments by expanding globally. The findings also offer practical insights for policymakers and managers seeking to support cultural industries in strengthening China’s soft power and global presence.
"Tax Incentives and Corporate Innovation: Evidence from China's Accelerated Depreciation Policy", Under Review
Abstract. We assess the impact of China’s 2014 and 2015 accelerated depreciation policies (ADP) on firm innovation, with patents granted as a key indicator of innovation output. Utilizing a dataset of Chinese A-share listed firms and applying a staggered difference-in-differences approach, we find that the ADP significantly increased the number of patents granted to firms. Mechanism analysis reveals that the policy boosted R&D investment, raised the ratio of technical employees, and lowered firms’ income tax relative to operating revenue, thereby alleviating financial constraints. Heterogeneity tests indicate that the effects of ADP were more pronounced for privately-owned firms, high-tech firms, and firms in the early stages of their development.
"Housing Provident Fund and Consumption Upgrading: An Empirical Analysis Based on China Urban Household Survey", with Wei Zhang and Ping Li
Abstract. This study examines the impact of the housing provident fund on household consumption upgrading, an area that has received limited attention. Using data from 120,000 households in the Urban Household Survey (UHS) conducted by the National Bureau of Statistics, the analysis explores the influence, mechanisms, and economic consequences of the housing provident fund. The findings indicate that income from the housing provident fund generally suppresses consumption upgrading, with significant differences across age and income groups. Moreover, rising housing prices exacerbate this inhibitory effect. The mechanism behind this outcome is the fund’s role in encouraging households to save for home purchases, which constrains their ability to spend on consumption upgrades. These negative impacts on consumption upgrading may further hinder domestic demand expansion and industrial upgrading. This study offers empirical evidence for evaluating the economic effects of the housing provident fund and underscores the need for reforms to optimize its design and functionality.
Work in Progress
From Bytes to Breath: How Big Data Zones Contribute to Air Pollution Reduction
Regulatory Easing and Innovation in Negative List Pilots
Big Data Zones and Their Role in Urban Green Innovation Efficiency
Does Environmental Policy Uncertainty Reshape Market Power?