PONE-D-24-06675The impact of macroeconomic policy uncertainty on micro-enterprise investment efficiency—Empirical evidence from ChinaPLOS ONE

Dear Dr. Bo Liang,

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Academic Editor

PLOS ONE

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Reviewers' comments:

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Reviewer #1: Partly

Reviewer #2: Partly

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2. Has the statistical analysis been performed appropriately and rigorously?

Reviewer #1: Yes

Reviewer #2: Yes

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Reviewer #1: Yes

Reviewer #2: Yes

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Reviewer #1: Yes

Reviewer #2: No

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5. Review Comments to the Author

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Reviewer #1: The analysis of the impact of macroeconomic policy uncertainty on micro-enterprise investment efficiency in the article yielded meaningful conclusions. However, it is important to note that there are deficiencies in various sections of the article. Therefore, my review conclusion is that a Major Revision is required. I hope the authors can improve the article based on the following suggestions, although these revisions may not be easy to implement:

1.The introduction section is incomplete, as it fails to clearly identify the gap in existing research and the importance of this study.

2.The rationale for focusing on China as the study's subject, especially considering PLOS is an international journal, needs to be clearly explained. Additionally, the paper lacks a comparison of its findings with those from other countries, a comparison that should be present in the introduction, literature review, or conclusion sections.

3.I have doubts about the key explanatory variable. Macroeconomic policy is multifaceted, so is it reasonable to measure it using only one index? Additionally, how is it measured and calculated specifically? Merely citing literature does not give me sufficient understanding of this index. Finally, have any journals published research using this index? Similarly, the selection of the key explained variable still needs literature support, as this indicator is quite indirect, as mentioned in the article.

4.The discussion and resolution of endogeneity are insufficient. First, the specifics of the PSM operation are unclear, such as what matching methods were used and other more detailed aspects of the matching process? Second, for reporting PSM results, it is recommended to regress using the matched sample and compare it with the baseline regression results. Third, I strongly suggest the authors try using instrumental variable methods to address potential endogeneity issues (caused by reverse causality or omitted variables, etc.).

5.Although the model setup for mechanism analysis is stated, Table 6 still needs to show the coefficients and significance levels of the mechanism variables (DFI, ESG & CON).

6.Any heterogeneity analysis must have a theoretical basis, i.e., why such heterogeneity analysis is conducted. Additionally, the explanation of the results of the heterogeneity analysis part needs support from relevant literature.

7.From the results of the entire text, it is confusing which time dimension the regression is conducted on. For example, in the model setup section, the author mentioned the time dimension is on an annual basis (year basis). However, some key variables are measured on a monthly and quarterly basis, and it is not detailed how the final indicators are calculated or summed to a fixed time dimension.

8.The conclusion section is very weak; merely summarizing the results of the entire text is insufficient. I suggest adding some necessary discussions, which could be policy implications or comparisons with the conclusions of existing related research.

Hope you everything well.

Reviewer #2: 1. The English writing should be improved.

2. Could you provide the results of sample balance test ?

3. Do you consider IV to deal with endogeneity problem.

4. Do you consider the unobserved factors varying with time?

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Reviewer #1: No

Reviewer #2: No

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The impact of macroeconomic policy uncertainty on micro-enterprise investment efficiency—Empirical evidence from China

PONE-D-24-06675R1

Dear Dr. Bo Liang,

We’re pleased to inform you that your manuscript has been judged scientifically suitable for publication and will be formally accepted for publication once it meets all outstanding technical requirements.

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Kind regards,

Ricky Chee Jiun Chia

Academic Editor

PLOS ONE

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