Abstract:

With the shift in China’s urban development model from urban development to urban renewal, it has been more and more important to evaluate the economic and social effects of an urban renewal project. In recent years, local state-owned enterprises have emerged as the main players in urban renewal projects. However, there is no consensus on the impact of such participation on enterprise efficiency. Employing a fixed-effect model and propensity matching scoring method and utilizing micro-transaction data of land plots and data of listed companies, this study is to assess the impact of local state-owned enterprises’ participation in urban renewal on their total factor productivity, as well as to explore the possible impact mechanism. The results show that, compared to non-state-owned enterprises, state-owned enterprises have a higher probability of participating in urban renewal, and such participation leads to a significant improvement in their total factor productivity. The corresponding influencing mechanisms include the compensation effect of local governments and the social responsibility of state-owned enterprises themselves. The findings of this study can serve as a policy basis for effectively promoting urban renewal and enhancing the production efficiency of local state-owned enterprises.

Key words: urban renewal, local state-owned enterprises, total factor productivity, compensation mechanism, corporate social responsibility