How do R&D factors affect total factor productivity: based on stochastic frontier analysis method

Shikuan Zhao, Wen Tian and Abd Alwahed Dagestani
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Shikuan Zhao: School of Public Policy and Administration, Chongqing University, Chongqing, China
Wen Tian: Institute of Finance and Economics, Shanghai University of Finance and Economics, Shanghai, China

Economic Analysis Letters, 2022, vol. 1, issue 2, 28-34

Abstract: Based on provincial panel data from 1998-2018, this paper estimates research and development (R&D) factors, and a stochastic frontier analysis (SFA) model is constructed to examine the effects of R&D factors on regional total factor productivity (TFP). The results show that both R&D capital stock and R&D personnel can significantly promote regional TFP, but the productivity-enhancing effect of R&D factors is different between regions. Specifically, R&D capital and R&D personnel can promote TFP in eastern and central provinces, and the promotion effect is not significant in western provinces. In addition, compared with investment-driven regions, innovation-driven regions are more likely to enhance TFP by R&D factors.

Keywords: R&D capital; R&D personnel; Total factor productivity; SFA approach (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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