Chapter
Dec 9, 2021
Can Venture Capital Optimize the Quality of Regional Economic Development?
Publication: ICCREM 2021
ABSTRACT
China’s regional economic growth used to rely on investment in real estate and fixed assets. However, during economic transformation and industrial upgrading, local governments are facilitating industrial upgrading and high-quality economic development with direct financial tools such as venture capital. This paper analyzes the relationship between venture capital and the quality of economic development through a panel vector autoregressive model established based on the annual panel data from China over the past 13 years. It is found that although the total amount of social financing has a significant positive impact on high-quality economic development, the impact of venture capital on them is not significant. However, the high quality of economic development will form a significant attraction effect for venture capital investment. It concludes that VC investment is not the driving factor of high-quality economic development, but only the result.
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REFERENCES
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ICCREM 2021
Pages: 111 - 117
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© 2021 American Society of Civil Engineers.
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Published online: Dec 9, 2021
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Authors
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1Professor, School of Government, Beijing Normal Univ., Beijing, China. Email: [email protected]
2Ph.D. Candidate, School of Government, Beijing Normal Univ., Beijing, China. Email: [email protected]
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