IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v54y2017icp25-42.html
   My bibliography  Save this article

Innovation and economic growth in the mining industry: Evidence from China's listed companies

Author

Listed:
  • Fan, Songmei
  • Yan, Jingjing
  • Sha, Jinghua

Abstract

As China's mining economy needs to transform from investment-driven growth into innovation-driven growth and in empirical researches the innovation has different influence on economic growth, we should make clear whether the innovation can promte China's mining economic growth. This paper constructs a panel data regression model to examine the relationship between the innovation and economic growth in the mining industry using 415 China's listed companies data from 2012 to 2014. The estimation results show that the unitary innovation level has significant positive effect on economic growth in the mineral extractive industry and the electricity, heat, gas and water production and supply industry. More specifically, the innovation elements including government support, the technical employees’ rate and the technical assets rate have significant positive relationships with economic growth in labor intensive state-owned sector or capital intensive mixed sector, but other innovation elements such as the employees’ rate with college degree or above and R&D intensity do not show significant interaction with economic growth in the mining industry. Therefore, to promote sustainable economic growth in the mining industry, the Chinese government should increase government aid to encourage the mineral companies do the scientific research and pay more attention to the cultivation of technical personnel. Finally, attracting more private investment into capital-intensive and state-owned sectors to improve the structure of China's mining industry is the key to boom the economy in the short term.

Suggested Citation

  • Fan, Songmei & Yan, Jingjing & Sha, Jinghua, 2017. "Innovation and economic growth in the mining industry: Evidence from China's listed companies," Resources Policy, Elsevier, vol. 54(C), pages 25-42.
    • Handle: RePEc:eee:jrpoli:v:54:y:2017:i:c:p:25-42
    DOI: 10.1016/j.resourpol.2017.08.007
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420717301265
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2017.08.007?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fagerberg, Jan & Verspagen, Bart, 2009. "Innovation studies--The emerging structure of a new scientific field," Research Policy, Elsevier, vol. 38(2), pages 218-233, March.
    2. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    3. Li, Ke & Lin, Boqiang, 2016. "Impact of energy technology patents in China: Evidence from a panel cointegration and error correction model," Energy Policy, Elsevier, vol. 89(C), pages 214-223.
    4. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    5. Xiping Pan & Jinghua Sha & Hongliang Zhang & Wenlan Ke, 2014. "Relationship between Corporate Social Responsibility and Financial Performance in the Mineral Industry: Evidence from Chinese Mineral Firms," Sustainability, MDPI, vol. 6(7), pages 1-25, June.
    6. Yu, Feifei & Guo, Yue & Le-Nguyen, Khuong & Barnes, Stuart J. & Zhang, Weiting, 2016. "The impact of government subsidies and enterprises’ R&D investment: A panel data study from renewable energy in China," Energy Policy, Elsevier, vol. 89(C), pages 106-113.
    7. Shen, Lixin & Muduli, Kamalakanta & Barve, Akhilesh, 2015. "Developing a sustainable development framework in the context of mining industries: AHP approach," Resources Policy, Elsevier, vol. 46(P1), pages 15-26.
    8. Lee, Craig & Hallak, Rob & Sardeshmukh, Shruti R., 2016. "Innovation, entrepreneurship, and restaurant performance: A higher-order structural model," Tourism Management, Elsevier, vol. 53(C), pages 215-228.
    9. Coad, Alex & Segarra, Agustí & Teruel, Mercedes, 2016. "Innovation and firm growth: Does firm age play a role?," Research Policy, Elsevier, vol. 45(2), pages 387-400.
    10. Hagspiel, Verena & Huisman, Kuno J.M. & Nunes, Clàudia, 2015. "Optimal technology adoption when the arrival rate of new technologies changes," European Journal of Operational Research, Elsevier, vol. 243(3), pages 897-911.
    11. Ouoba, Youmanli, 2016. "Natural resources: Funds and economic performance of resource-rich countries," Resources Policy, Elsevier, vol. 50(C), pages 108-116.
    12. Matthew Himley, 2010. "Global Mining and the Uneasy Neoliberalization of Sustainable Development," Sustainability, MDPI, vol. 2(10), pages 1-21, October.
    13. Jozef Konings, 2001. "The effects of foreign direct investment on domestic firms," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 9(3), pages 619-633, November.
    14. Peter Howitt, 1999. "Steady Endogenous Growth with Population and R & D Inputs Growing," Journal of Political Economy, University of Chicago Press, vol. 107(4), pages 715-730, August.
    15. Flor, M. L. & Oltra, M. J., 2004. "Identification of innovating firms through technological innovation indicators: an application to the Spanish ceramic tile industry," Research Policy, Elsevier, vol. 33(2), pages 323-336, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pozzolo, Alberto Franco, 2004. "Endogenous Growth in Open Economies - A Survey of Major Results," Economics & Statistics Discussion Papers esdp04020, University of Molise, Department of Economics.
    2. Cozzi, Guido & Pataracchia, Beatrice & Pfeiffer, Philipp & Marco, Ratto, 2017. "How much Keynes and how much Schumpeter? An Estimated Macromodel of the US Economy," JRC Working Papers in Economics and Finance 2017-01, Joint Research Centre, European Commission.
    3. Czesława Pilarska, 2018. "Efekty zewnętrzne bezpośrednich inwestycji zagranicznych z perspektywy kraju goszczącego," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 93-124.
    4. Colantone, Italo & Crinò, Rosario, 2014. "New imported inputs, new domestic products," Journal of International Economics, Elsevier, vol. 92(1), pages 147-165.
    5. Bloom, David E. et.al., 2013. "Economic impact of non-communicable disease in China and India: Estimates, projections and comparisons," Working Papers 300, Institute for Social and Economic Change, Bangalore.
    6. Madsen, Jakob B., 2010. "The anatomy of growth in the OECD since 1870," Journal of Monetary Economics, Elsevier, vol. 57(6), pages 753-767, September.
    7. Chu, Angus C. & Furukawa, Yuichi & Wang, Xilin, 2022. "Rent-seeking government and endogenous takeoff in a Schumpeterian economy," Journal of Macroeconomics, Elsevier, vol. 72(C).
    8. Jakob B. Madsen, 2009. "The Anatomy of Growth in the OECD since 1870: the Transformation from the Post-Malthusian Growth Regime to the Modern Growth Epoch," Monash Economics Working Papers 14-09, Monash University, Department of Economics.
    9. Prettner, Klaus, 2012. "Public education, technological change and economic prosperity: semi-endogenous growth revisited," VfS Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 65414, Verein für Socialpolitik / German Economic Association.
    10. Ruiyang Hu & Yibai Yang & Zhijie Zheng, 2023. "Effects of subsidies on growth and welfare in a quality‐ladder model with elastic labor," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 25(5), pages 1096-1137, October.
    11. Gehringer, Agnieszka & Prettner, Klaus, 2019. "Longevity And Technological Change," Macroeconomic Dynamics, Cambridge University Press, vol. 23(4), pages 1471-1503, June.
    12. Bloom, David E. & Cafiero-Fonseca, Elizabeth T. & McGovern, Mark E. & Prettner, Klaus & Stanciole, Anderson & Weiss, Jonathan & Bakkila, Samuel & Rosenberg, Larry, 2014. "The macroeconomic impact of non-communicable diseases in China and India: Estimates, projections, and comparisons," The Journal of the Economics of Ageing, Elsevier, vol. 4(C), pages 100-111.
    13. Martin Zagler & Georg Dürnecker, 2003. "Fiscal Policy and Economic Growth," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 397-418, July.
    14. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.
    15. Paul S. Segerstrom, 2007. "Intel Economics," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(1), pages 247-280, February.
    16. Angus C. Chu & Guido Cozzi, 2014. "R&D And Economic Growth In A Cash‐In‐Advance Economy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55(2), pages 507-524, May.
    17. Guido Cozzi & Silvia Galli, 2014. "Sequential R&D and blocking patents in the dynamics of growth," Journal of Economic Growth, Springer, vol. 19(2), pages 183-219, June.
    18. Strulik, Holger & Prettner, Klaus & Prskawetz, Alexia, 2010. "R\&D-based Growth in the Post-modern Era," Hannover Economic Papers (HEP) dp-457, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    19. Angus C. Chu & Yuichi Furukawa & Sushanta Mallick & Pietro Peretto & Xilin Wang, 2021. "Dynamic effects of patent policy on innovation and inequality in a Schumpeterian economy," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(4), pages 1429-1465, June.
    20. Claudio Michelacci, 2003. "Low Returns in R&D Due to the Lack of Entrepreneurial Skills," Economic Journal, Royal Economic Society, vol. 113(484), pages 207-225, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:54:y:2017:i:c:p:25-42. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.