Applied Economics· 2026Q2
How do government-guided funds enhance employment scale?: evidence from China
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- Q2SCImago
- 2026year
Short summary
Government-guided funds significantly increase regional employment scale in China, primarily by amplifying venture capital, increasing financial loans, augmenting fiscal expenditure on employment, and stimulating entrepreneurship.
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Key points
- Government-guided funds significantly increase regional employment scale.
- Employment enhancement occurs via venture capital, financial loans, fiscal expenditure, and entrepreneurship.
- The effect is stronger in peripheral cities, non-eastern regions, and the secondary sector.
- Venture capital funds are more effective than industrial investment funds; PPP funds have no significant effect.
- Policy synergy, via local spending on S&T, education, and environment, amplifies the employment impact.
AI-generated from the title and abstract; the full text is not read.
Abstract
Drawing on prefecture-level panel data from 2007 to 2023 and government-guided fund data from the Zero2IPO Private Equity Database, this study employs a staggered difference-in-differences (DID) model to examine the impact of government-guided funds on regional employment, along with the underlying mechanisms and boundary conditions. The findings reveal that: (1) government-guided funds significantly enhance regional employment scale; (2) the employment effect operates through four channels: amplifying venture capital, increasing financial loans, augmenting fiscal expenditure on employment, and stimulating entrepreneurship; (3) the effect is stronger in peripheral cities, non-eastern regions, and the secondary sector, with venture capital funds outperforming industrial investment funds, while PPP funds show no significant effect; and (4) local fiscal expenditures on science and technology, education, and environmental protection reinforce this employment impact, highlighting the value of policy synergy.
The authors' abstract, as published at the source. Applied Economics, 2026 · DOI ↗
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Field: Economics and Econometrics
Economics and EconometricsEconomics, Econometrics and Finance