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Intangible capital, ICT and sector growth in China

Qing Li and Yanrui Wu

Telecommunications Policy, 2020, vol. 44, issue 1

Abstract: This paper explores how intangible capital affects the growth of ICT-intensive sectors in China by examining 29 sectors in 30 regions for the years 2003–2015. It is shown that the value added in ICT-intensive sectors in China will grow faster in regions with faster development of intangible capital. This effect is robust to alternative measures of intangible capital and ICT intensity indicators, and even if other region-level determinants of sector growth such as human capital, non-ICT physical capital and financial market development are taken into consideration. The findings imply that Chinese policy makers should aim for not only more ICT investment but also the development of intangible capital.

Keywords: Intangible capital; ICT; Sector growth; China (search for similar items in EconPapers)
JEL-codes: O34 O47 O53 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.telpol.2019.101854

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