Does the accelerated depreciation policy promote the intelligent transformation of manufacturing firms? — Evidence from China

Amid the profound restructuring of global manufacturing, intelligent transformation has emerged as a critical engine of high-quality industrial development. Although China has gradually implemented accelerated depreciation policies for fixed assets, empirical evidence on whether these policies effectively promote firms’ intelligent upgrading remains scarce. Using data on A-share listed manufacturing firms from 2011 to 2018, this study empirically identifies the impact of the accelerated depreciation policies introduced in 2014 and 2015 on firms’ intelligent transformation. The results indicate that the policy significantly enhances firms’ intelligent upgrading. Mechanism analysis indicates that the policies operate primarily by inducing firms to adjust their internal labour structure. Heterogeneity analysis further reveals that the effects are stronger for firms in highly competitive industries, for those operating in capital-intensive sectors, and for non – state-owned enterprises. This study enriches the literature on the real effects of accelerated depreciation policies and offers policy implications for emerging economies seeking to accelerate intelligent manufacturing.