Financial Development and Innovation in China: Evidence from the Provincial Data
AbstractThis paper investigates the role of regional financial development, in addition to FDI, for regional innovation in China, using a more recent provincial dataset and more sophisticated panel data estimation techniques than previous studies. Two aspects of regional financial system development are considered: its financial depth and government intervention in the financial system. Estimation results show that the financial depth of a region has a significantly positive effect on regional innovation (patenting) performance. This positive effect is found to be higher for minor innovations such as external design patents than for more complicated innovations such as utility model patents and invention patents. Surprisingly, estimation results do not show that government financial system intervention reduces allocative efficiency of resources which would otherwise impede regional innovation performance
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Bibliographic InfoPaper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 1673.
Length: 35 pages
Date of creation: Jan 2011
Date of revision:
regional financial system; FDI; innovation; patent; regional study; China;
Find related papers by JEL classification:
- G20 - Financial Economics - - Financial Institutions and Services - - - General
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
- R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-05 (All new papers)
- NEP-DEV-2011-02-05 (Development)
- NEP-GEO-2011-02-05 (Economic Geography)
- NEP-INO-2011-02-05 (Innovation)
- NEP-IPR-2011-02-05 (Intellectual Property Rights)
- NEP-TRA-2011-02-05 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sylviane Guillaumont Jeanneney & Ping Hua & Zhicheng Liang, 2011.
"Financial Development, Economic Efficiency and Productivity Growth: Evidence from China,"
- Sylviane GUILLAUMONT JEANNENEY & PING HUA & ZHICHENG LIANG, 2006. "Financial Development, Economic Efficiency, And Productivity Growth: Evidence From China," The Developing Economies, Institute of Developing Economies, vol. 44(1), pages 27-52.
- Zhicheng LIANG & Ping HUA & Sylviane GUILLAUMONT JEANNENEY, 2006. "Financial Development, Economic Efficiency and Productivity Growth: Evidence from China," Working Papers 200625, CERDI.
- Shahid Yusuf, 2012. "From Technological Catch-up to Innovation : The Future of China’s GDP Growth," World Bank Other Operational Studies 12781, The World Bank.
- Wan-Hsin Liu, 2012. "The Role of Proximity to Universities for Corporate Patenting - Provincial Evidence from China," Kiel Working Papers 1796, Kiel Institute for the World Economy.
- Wan-Hsin Liu, 2013. "The role of proximity to universities for corporate patenting: provincial evidence from China," The Annals of Regional Science, Springer, vol. 51(1), pages 273-308, August.
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