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Does Method Selection Matter? A New Look at FDI and Human Capital in Chinese High-Tech Industries

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  • Guoqing Zhao

    (School of Economics, Renmin University of China, Beijing 100872, China)

  • Zhongyuan Zhang

    (School of Economics, Renmin University of China, Beijing 100872, China)

Abstract

Using the data that comes from China Statistical Yearbook on High Technology Industry, this paper examines the human capital accumulation, the R&D expenditure and the FDI externality effects on the productivity improvement of Chinese high-tech industries. Our empirical results suggest that the effects of FDI and human capital accumulation on technological progress depend in part on the adopted approaches. We believe that the dynamic model dominates the static model estimates. This paper finds little evidence in support of technological spillovers from FDI and indicate that the technological progresses are mainly rooting in human capital accumulation other than technology spillover induced by FDI in Chinese high-tech industry.

Suggested Citation

  • Guoqing Zhao & Zhongyuan Zhang, 2011. "Does Method Selection Matter? A New Look at FDI and Human Capital in Chinese High-Tech Industries," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 6(1), pages 36-54, March.
    • Handle: RePEc:fec:journl:v:6:y:2011:i:1:p:36-54
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    File URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-011-0121-9
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    More about this item

    Keywords

    human capital; R&D expenditure; FDI; total factor productivity (TFP); dynamic method;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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