Can Consumption Drive Industrial Upgrades? Evidence from Chinese Household and Firm Matching Data

Dongyang Zhang, Xinxin Ma, Jun Zhang and Quheng Deng

Emerging Markets Finance and Trade, 2020, vol. 56, issue 2, 409-426

Abstract: This paper presents evidence that consumption is an important drive factor contributing to dynamic industrial upgrading in urban China. This paper investigates how consumption value and variations influence TFP growth and the number of new patents, and how the profit, exports, and share of the private sector influence the relation between consumption and industrial upgrades. The household and firm matching dataset from 1998 to 2007 is employed. The results suggest that both consumption value and variations positively affect TFP growths and increase the number of new product patents. This influence appears in both the agricultural and manufacturing industry sectors. Scrutiny of the channels of the influence of consumption on industrial upgrades indicates that profit rate is significantly associated with the consumption-industrial upgrade linkage but exports do not contribute to industrial upgrades in the domestic market. Growth in the consumption of new products in the private sector significantly stimulates industrial upgrades.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1080/1540496X.2019.1610878 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mes:emfitr:v:56:y:2020:i:2:p:409-426

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MREE20

DOI: 10.1080/1540496X.2019.1610878

Access Statistics for this article

More articles in Emerging Markets Finance and Trade from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().