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How do interregional spillovers influence the distribution of technology? The case of Chinese manufacturing

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  • Xuemei Jiang
  • Xiaolin Lu
  • Jian Xu

Abstract

The Chinese economy displays considerable inequality across regions. In this paper, we analyzed the distribution of intermediate input shares in China. We use regional input–output tables from 2007 and find that regions with higher GDP per capita generally had higher input shares, regardless of sector. Then, using intermediate input shares as a proxy of technology, we analyzed the pattern of regional technology distributions across manufacturing sectors as well as the extent of interregional technology spillovers. Our results indicate that interregional backward spillovers have significantly positive impacts on the shape of the technology distributions in eastern (coastal) regions. By contrast, the vertical spillovers of the central and western regions are largely dominated by intra-regional forward effects. Our results suggest that the shift of Chinese manufacturing from coastal to inland regions with lower production costs cannot reduce the imbalance among regions unless the technology gap is narrowed.

Suggested Citation

  • Xuemei Jiang & Xiaolin Lu & Jian Xu, 2018. "How do interregional spillovers influence the distribution of technology? The case of Chinese manufacturing," Economic Systems Research, Taylor & Francis Journals, vol. 30(2), pages 219-237, April.
    • Handle: RePEc:taf:ecsysr:v:30:y:2018:i:2:p:219-237
    DOI: 10.1080/09535314.2017.1393654
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    Cited by:

    1. Jieping Chen & Xianpeng Long & Shanlang Lin, 2022. "Special Economic Zone, Carbon Emissions and the Mechanism Role of Green Technology Vertical Spillover: Evidence from Chinese Cities," IJERPH, MDPI, vol. 19(18), pages 1-22, September.
    2. Jiang, Xuemei & Zhang, Xinyang & Xia, Yan, 2023. "Peer effect on low-carbon practices of firms along the value chain: Evidence from China," Energy Economics, Elsevier, vol. 127(PA).
    3. Wang, Xiaoyu & Sun, Yanlin & Peng, Bin, 2023. "Industrial linkage and clustered regional business cycles in China," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 59-72.
    4. Yu, Lean & Zha, Rui & Stafylas, Dimitrios & He, Kaijian & Liu, Jia, 2020. "Dependences and volatility spillovers between the oil and stock markets: New evidence from the copula and VAR-BEKK-GARCH models," International Review of Financial Analysis, Elsevier, vol. 68(C).

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