Institutional Environment and Green Economic Growth in China

Table 1

Indexes of institutional environment quality.

Variable	Basic index	Description	Direction
Institutional quality	A comprehensive index constituted through the entropy weight method, based on three subindexes—government, law, and culture		+
Governmental subenvironment	Government domination	Public finance expenditure/GDP	−
	Government interruption	Local financial revenue/local financial expenditure	−
	Scale of government	Number of employees in public management and social organizations at the end of the year/total population	−
	Tax on enterprises	Industrial enterprise tax/operating revenue	−
	Efficiency of administrative approval	Administrative examination and approval procedures’ concise situation enterprise sampling rating	+
Legal subenvironment	Corruption	Number of graft cases/total population	−
	Social stability	Logarithm of the number of criminal offenses per 10,000 people	−
	Patent protection	Cumulative settlement of patents/cumulative number of filed patents	+
	Labor protection	Labor dispute cases/total population	−
Cultural subenvironment	Innovation entrepreneurship	Logarithm of (patent grants/total employed population × 10,000)	+

Note. “+” means that the variable theoretically has a positive effect on the institutional quality, while “-” implies a negative one.