Productivity in China's high technology industry: Regional heterogeneity and R&D
AbstractThis paper analyzes the impact of Research and Development (R&D) on the productivity of China's high technology industry. In order to capture important differences in the effect of R&D on output that arise from geographic and socioeconomic differences across three major regions in China, we use a novel semiparametric approach that allows us to model heterogeneities across provinces and time. Using a unique provincial level panel dataset spanning the period 2000-2007, we find that the impact of R&D on output varies substantially in terms of magnitude and significance across different regions. Results show that the eastern region benefits the most from R&D investments, however it benefits the least from technical progress, while the western region benefits the least from R&D investments, but enjoys the highest benefits from technical progress. The central region benefits from R&D investments more than the western region and benefits from technical progress more than the eastern region. Our results suggest that R&D investments would significantly increase output in both the eastern and central regions, however technical progress in the central region may further compound the effects of R&D on output within the region.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 32507.
Date of creation: 30 Jun 2011
Date of revision:
China; Research and Development; Productivity; Semiparametric smooth coefficient model;
Find related papers by JEL classification:
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- L00 - Industrial Organization - - General - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-09 (All new papers)
- NEP-CSE-2011-08-09 (Economics of Strategic Management)
- NEP-EFF-2011-08-09 (Efficiency & Productivity)
- NEP-GEO-2011-08-09 (Economic Geography)
- NEP-INO-2011-08-09 (Innovation)
- NEP-TRA-2011-08-09 (Transition Economics)
- NEP-URE-2011-08-09 (Urban & Real Estate Economics)
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