Do governmental policy interventions help urban economic recovery? Experimental evidence from China's provinces governance amid the COVID-19 pandemic

Dequan Jiang; Weiping Li; Junli Yu; Ying Zhang

doi:10.1111/grow.12661

Do governmental policy interventions help urban economic recovery? Experimental evidence from China's provinces governance amid the COVID-19 pandemic

Growth Change. 2022 Dec 12:10.1111/grow.12661. doi: 10.1111/grow.12661. Online ahead of print.

Authors

Dequan Jiang¹, Weiping Li², Junli Yu³, Ying Zhang⁴

Affiliations

¹ School of Accountancy Institute of Accounting and Finance Shanghai University of Finance and Economics Shanghai China.
² International School of Business & Finance Advanced Institute of Finance Institute of Enterprise Sun Yat-sen University Zhuhai China.
³ China Institute for Urban Governance School of International and Public Affairs Data-Driven Management Decision Making Lab Shanghai Jiao Tong University Shanghai China.
⁴ Business School Central South University Changsha China.

Abstract

By examining China's province-level data, this paper uses governmental intervention theory to investigate the extent to which governmental policy interventions alleviate the impact of the COVID-19 pandemic on local economic growth. Results suggest that stronger government intervention during COVID-19 pandemic boost the economic recovery, and the effectiveness of governmental policy interventions is contingent on pandemic severity and local economic endowment. Specifically, facilitating effect of government intervention on economic growth is effective in all provinces, and the impact of government intervention is more pronounced in the province with more diagnosed cases, a high level of marketization and fiscal income.