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IT, R&D and Productivity of Chinese Manufacturing Firms


  • MOTOHASHI Kazuyuki
  • YUAN Yuan


This paper analyzes the productivity performance of Chinese manufacturing firms from 1995 to 2003 by using a large-scale firm-level dataset from the National Bureau of Statistics, Peoples Republic of China. Over this period, a large number of firms were converted to stock holding companies, and an increasing presence of foreign-owned companies further accelerated structural changes in Chinese industry sectors. It is found that such changes of ownership positively contribute to aggregate productivity growth. In addition, IT and R&D intensity is positively correlated with firm-level productivity growth. However, we cannot find a positive impact of either IT or R&D on productivity after controlling reverse causality of productivity on IT and R&D investments.

Suggested Citation

  • MOTOHASHI Kazuyuki & YUAN Yuan, 2009. "IT, R&D and Productivity of Chinese Manufacturing Firms," Discussion papers 09007, Research Institute of Economy, Trade and Industry (RIETI).
  • Handle: RePEc:eti:dpaper:09007

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    References listed on IDEAS

    1. Motohashi, Kazuyuki, 2007. "Firm-level analysis of information network use and productivity in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 21(1), pages 121-137, March.
    2. Watanabe, Mariko, 2002. "Holding company risk in China: a final step of state-owned enterprises reform and an emerging problem of corporate governance," China Economic Review, Elsevier, vol. 13(4), pages 373-381, December.
    3. Motohashi, Kazuyuki, 2008. "IT, enterprise reform, and productivity in Chinese manufacturing firms," Journal of Asian Economics, Elsevier, vol. 19(4), pages 325-333, August.
    4. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    5. Zhang, Anming & Zhang, Yimin & Zhao, Ronald, 2001. "Impact of Ownership and Competition on the Productivity of Chinese Enterprises," Journal of Comparative Economics, Elsevier, vol. 29(2), pages 327-346, June.
    6. Jefferson, Gary H. & Rawski, Thomas G. & Li, Wang & Yuxin, Zheng, 2000. "Ownership, Productivity Change, and Financial Performance in Chinese Industry," Journal of Comparative Economics, Elsevier, vol. 28(4), pages 786-813, December.
    7. Gary H. Jefferson & Thomas G. Rawski, 1994. "Enterprise Reform in Chinese Industry," Journal of Economic Perspectives, American Economic Association, vol. 8(2), pages 47-70, Spring.
    8. Qiang, Qu, 2003. "Corporate governance and state-owned shares in China listed companies," Journal of Asian Economics, Elsevier, vol. 14(5), pages 771-783, October.
    9. Albert G. Z. Hu & Gary H. Jefferson & Qian Jinchang, 2005. "R&D and Technology Transfer: Firm-Level Evidence from Chinese Industry," The Review of Economics and Statistics, MIT Press, vol. 87(4), pages 780-786, November.
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    Cited by:

    1. Yang, Chih-Hai & Lin, Hui-Lin & Li, Hsiao-Yun, 2013. "Influences of production and R&D agglomeration on productivity: Evidence from Chinese electronics firms," China Economic Review, Elsevier, vol. 27(C), pages 162-178.
    2. Lin, Hui-Lin & Li, Hsiao-Yun & Yang, Chih-Hai, 2011. "Agglomeration and productivity: Firm-level evidence from China's textile industry," China Economic Review, Elsevier, vol. 22(3), pages 313-329, September.

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