September 16, 2025

Financial Decentralization, Government Attention to STI and SME Growth

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Financial decentralization and government support significantly increase SMEs' staff size and profitability.
Government attention to science and technology innovation mediates the effects of financial decentralization on SME growth.
Regional heterogeneity shows western regions benefit most from financial decentralization for SME development.
Robustness tests confirm the results, suggesting a need for aligned financial support and government guidance.

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Analysis reveals financial decentralization significantly boosts SME growth through government support and innovation focus.

Longlong Duan (2025) studied this question.

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