Paired Assistance Policy and Regional Coordinated Development in the New Era: Based on the Micro Evidence of Cross-regional Investment of Listed Firms

摘要

In the new era, the Paired Assistance Policy (PAP)—national governance mechanism with Chinese characteristics,—plays a key role in fostering regional coordinated development. Using data from China’s A-share listed companies between 2013 and 2020, this study shows that PAP significantly encourages enterprise investment from supporting regions to paired cities, thereby contributing to addressing the “Lucas Paradox” of capital flow. This effect is more substantial among state-owned enterprises, in recipient regions with lower marketization levels, and in paired cities where industrial structures differ significantly. The policy works by exerting institutional pressure, lowering investment and operational costs in recipient regions, and improving firms’ access to local information and complementary resources. Further analysis reveals that cross-regional investments under the PAP enhance the development quality of both recipient regions and the supporting enterprises themselves. Thus, these findings provide empirical evidence of PAP’s role in regional coordinated development and offer theoretical and policy insights for refining the PAP in the new era.