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ICT, Human Capital, and Productivity in Chinese Cities

Author

Listed:
  • Qing Li

    (Department of Economics and Finance, SILC Business School, Shanghai University)

  • Yanrui Wu

    (Business School, The University of Western Australia)

Abstract

This study uses a rich city-level dataset to analyse the relationship between information and communication technology (ICT) and productivity performance in China during 2003-2016. It is shown that ICT positively contributes to Chinese cities’ productivity in conjunction with other growth determinants, such as human capital, foreign direct investment, infrastructure development, financial market development, and research and development investment. An identifiable amplified effect is detected when ICT exceeds certain threshold in Chinese cities. This threshold level is reached in over a half of Chinese cities particularly cities in coastal regions. Finally, ICT is found to substitute human capital in China’s context. Since the average education level in Chinese cities is low, the finding is in line with the argument that ICT only improves productivity of high-skilled workers but worsens that of the low-skilled ones.

Suggested Citation

  • Qing Li & Yanrui Wu, 2022. "ICT, Human Capital, and Productivity in Chinese Cities," Economics Discussion / Working Papers 22-05, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:22-05
    Note: MD5 = d0daf8ba259fb4c10bd973e72b7ba88a
    as

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    More about this item

    Keywords

    ICT; human capital; productivity; China;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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