Government Procurement Contract Financing Policy and Total Factor Productivity
DOI:
https://doi.org/10.62051/4zvdmk43Keywords:
Government Procurement Contract Financing Policy; Total Factor Productivity; Financing Constraints; Corporate Innovation; Labor Resource Allocation.Abstract
Government Procurement Contract Financing Policy (referred to as the "government procurement loan" policy) represents a crucial institutional innovation in fiscal and financial synergy aimed at supporting the development of firms. Exploiting the phased implementation of the "government procurement loan" policy across regions as a quasi-natural experiment, this paper uses A-share listed firms from 2015 to 2024 as the research sample and employs a difference-in-differences (DID) approach to examine the impact of the policy on firm total factor productivity (TFP). The findings show that the "government procurement loan" policy significantly promotes firm total factor productivity. Mechanism analysis indicates that the policy mainly operates through three channels: alleviating financing constraints, stimulating corporate innovation, and optimizing labor resource allocation. Further analysis reveals that the effect is more pronounced among firms with lower audit quality, firms in high-tech industries, and private enterprises. From the perspective of total factor productivity, this paper expands the research dimensions of government procurement policy evaluation and uncovers the mechanisms through which the "government procurement loan" policy affects firms’ production efficiency. As an innovative financing policy based on government procurement contracts, the policy effectively activates existing government resources and enhances firm production efficiency while facilitating the targeted allocation of financial capital without increasing fiscal burdens. Therefore, future policy optimization should further exploit the credit-enhancing role of government procurement contracts, improve the closed-loop management mechanism of tripartite accounts, and implement differentiated support according to firm characteristics to better promote firm total factor productivity.
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