Can private domestic investment lead Chinese technological progress?

Hong Chen, Xi Wang and Baljeet Singh

Economic Modelling, 2018, vol. 70, issue C, 186-193

Abstract: This study examines the effects of private domestic investment (PDI), foreign domestic investment (FDI), state-owned units’ investment (SOI) and their interactions on technological progress in China. Specifically, we test whether PDI leads Chinese technological progress, and crowd-out effects from FDI and SOI. The empirical analysis is based on panel data consisting of 29 Chinese provinces and municipalities over 1989–2014. We extract technological progress using the panel stochastic frontier model and examine its determinants. Our findings suggest that while PDI, FDI and SOI all positively contribute to technological progress in China, PDI is the dominant contributor.

Keywords: Technological progress; FDI; Private domestic investment; State-owned investment; Stochastic frontier analysis (search for similar items in EconPapers)
JEL-codes: C51 E22 O11 P33 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:70:y:2018:i:c:p:186-193

DOI: 10.1016/j.econmod.2017.11.002

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