Business environment, technological innovation and government intervention: influences on high-quality economic development

Abstract

Purpose

This paper aims to explore the impact of business environment on high-quality economic development (HQED) and clarify the role of technological innovation and government intervention in this relationship.

Design/methodology/approach

Based on China’s provincial panel data from 2010 to 2019, this paper adopts the system generalized method of moments to empirically analyze the influential mechanism and heterogeneity of the business environment on HQED. Furthermore, the authors construct a dynamic panel threshold model to test the threshold effect of government intervention.

Findings

The results indicate that optimizing the business environment can significantly promote HQED, technological innovation plays a partial mediating role in the impact of business environment on HQED, mainly by enhancing the intensity of innovation input and increasing innovation output to facilitate HQED. Government intervention can regulate the impact of business environment on HQED, and there is a double threshold effect, and it possesses an inverted U-shaped feature of first promoting and then inhibiting.

Originality/value

This paper examines the influence path of business environment on HQED from the perspective of technological innovation and government intervention, filling the gap in the study of provincial business environment. Moreover, the conclusions furnish a theoretical basis for optimizing the business environment and facilitating the HQED in China.

Citation

Zhong, Z. and Chen, Z. (2023), "Business environment, technological innovation and government intervention: influences on high-quality economic development", Management Decision, Vol. 61 No. 8, pp. 2413-2441. https://doi.org/10.1108/MD-08-2022-1073