The Impact of the Resource-Exhausted City Program on Manufacturing Enterprises' Performance: A Policy Measures Perspective

The transformation of resource-based cities has a crucial impact on the development of local manufacturing enterprises. This study aims to assess the impact of the Resource-Exhausted City Program (RECP) on the performance of manufacturing enterprises, with a particular focus on the role of policy measures. Using data on manufacturing enterprises from 2004 to 2014, this study employs multiple difference-in-difference methods to investigate the impact of the RECP on corporate performance and its potential mechanisms. The results show that (1) the RECP can significantly improve the performance of firms in the pilot areas; (2) the implementation of RECP contributes to the improvement of manufacturing enterprises' performance by using policy measures, mainly including subsidies, tax incentives and access to low-interest loans; and (3) the supportive effects of the RECP are more pronounced in outward-oriented, state-owned and larger manufacturing enterprises. This study provides new insights into the relationship between resource-exhausted city policies and corporate performance.