ECONOMIC OPENNESS, TECHNOLOGY GAP AND TOTAL FACTOR PRODUCTIVITY BASED ON SEMI-PARAMETRIC ESTIMATION OF CHINA'S MANUFACTURING INDUSTRY PANEL DATA

Mingyi Wang () and Wenqi Zhang ()
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Mingyi Wang: Shandong University of Finance & Economics, No.7366 of Er Huan East Road, Jinan, China
Wenqi Zhang: Shandong University of Finance & Economics, No.40, Shun Geng Road, Jinan, China

Management Research and Practice, 2014, vol. 6, issue 3, 28-40

Abstract: By selecting the panel data from 26 sectors in China’s manufacturing industry from 2002 to 2011 and using the semi-parametric estimation method,this paper discusses the effects of economic openness, technology gap and human capital on total factor productivity. On the basis of handling the multi-collinearity problem, the empirical research finds that both China's economic openness and reasonable technology gap significantly promote the technological level of the industry. This effect is obviously enhanced by joining a series of control variables. The level of human capital has shown a negative correlation with the technology gap. Classified samples test results indicate that the promoting effects are more obvious in sectors that have higher human capital level and research and development (R&D) ratios.

Keywords: economic openness; technology gap; total factor productivity; multicollinearity problem; semi-parametric estimation. (search for similar items in EconPapers)
Date: 2014
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