Does National Independent Innovation Demonstration Zone Construction Help Improve Urban Green Total Factor Productivity? A Policy Assessment from China

Abstract

Taking the innovation policy pilot of the national independent innovation demonstration zone (NIIDZ) as a quasi-natural experiment, we select a set of data covering 283 cities in China from 2004 to 2016 to empirically test the impact and mechanism of NIIDZ on urban green total factor productivity (GTFP) by using a progressive difference-in-differences (DID) model. The research indicates that the NIIDZ policy pilot can effectively help promote the growth of urban GTFP; talent agglomeration and local fiscal expenditure on science and technology are important channels for the policy to promote urban GTFP. Various methods have proved the reliability of our research results. Further, affected by geographical location, resource endowment and population size, the pilot effects of the NIIDZ also demonstrate regional heterogeneity. Our study provides a useful supplement for innovation policy evaluation from both theoretical and empirical perspectives.