 External technology dependence and manufacturing TFP: Evidence from ChinaCheng Zhang, Yangyang Yao and Han Zhou Research in International Business and Finance, 2023, vol. 64, issue C Abstract: It remains an open question whether the reduction of external technology dependence (ETD) on foreign countries can improve the total factor productivity (TFP) of China's manufacturing industry. This paper uses the data of China's manufacturing industry from 2000 to 2016, to study the impact of ETD on TFP. Empirical results show that a 1% decrease in ETD could induce a 1% increase in TFP. As the TFP gap between China and the frontier countries shrinks, the indigenous innovation gains increasing importance. One can find that the effect of ETD on TFP in technology-intensive industries is stronger than that of other industries. Moreover, this study finds that the influence of ETD on TFP shows a significant threshold effect. Further, this paper uses the ratio of patents granted to represent the innovation capacity, and verifies its moderating role in the effect of ETD on TFP. Keywords: External technology dependence; Total factor productivity gap; Industry heterogeneity; Human capital; Innovation capacity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:64:y:2023:i:c:s0275531923000119 DOI: 10.1016/j.ribaf.2023.101885 Access Statistics for this article Research in International Business and Finance is currently edited by T. Lagoarde Segot More articles in Research in International Business and Finance from Elsevier |
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