Industrial policy, structural transformation and economic growth: evidence from China

Frontiers of Business Research in China

Table 5 Mechanism test

Industrial policy—Industrial structure
	Structure₁		Structure₂
	(1)	(2)	(3)	(4)
IP	0.0476	0.2157^**	−0.0895	0.0476
IP	(0.0998)	(0.0921)	(0.0966)	(0.0427)
Control variables	No	Yes	No	Yes
Year_FE	Yes	Yes	Yes	Yes
City_FE	Yes	Yes	Yes	Yes
N	2937	2610	3185	2662
Adj.R²	0.025	0.136	0.028	0.073
Industrial structure—Economic growth
	(5)	(6)	(7)	(8)
Structure₁	0.0515^***	0.0557^***
Structure₁	(0.0114)	(0.0083)
Structure₂			−0.0626^**	−0.0700^***
Structure₂			(0.0274)	(0.0252)
IP	0.0518^**	0.0239	0.0592^**	0.0403^**
IP	(0.0217)	(0.0183)	(0.0238)	(0.0200)
Control variables	No	Yes	No	Yes
Year_FE	Yes	Yes	Yes	Yes
City_FE	Yes	Yes	Yes	Yes
N	2937	2842	3289	2919
Adj.R²	0.799	0.854	0.781	0.835

Notes. (1) ** means P < 5%, *** means P < 1%; (2) The estimated coefficients in parentheses are the robust standard errors clustering to the city level