Evaluation of the sophistication of Chinese industries using the information-geometric decomposition approach

Takanori Minamikawa

Discussion papers from ERINA - Economic Research Institute for Northeast Asia

Abstract: Since the Open Door Policy was implemented in 1978, China economy has maintained a high economic growth. During this period, although the reform of state-owned enterprises and the introduction of foreign direct investments might cause the change of the industrial structure, the common recognition, about how those factor has changed Chinese industrial structure, has not been obtained. This paper applied information geometric decomposition to Input-Output tables of China in the period 1981 to 2010, and extracted the factors of the technological changes in the whole industry in China. This paper examines the different of evaluation of industrial structure between input coefficient index and information geometry approach. Furthermore based on the factors, two industrial sophistication indicators, which are about degree of Mechanization and degree of ICT introducing, respectively are constructed. The empirical results suggests that the degree of mechanization and included ICT has different characteristics for each other. Regarding mechanization, the mechanized manufacturing sectors showed increases in sophistication in the 1980s and 2000s; however, mechanized tertiary sectors showed increases in sophistication in the 1990s. Regarding ICT input, while manufacturing sectors showed a high level of sophistication in ICT input in the 2000s, tertiary sectors showed a high level of sophistication in ICT input in the 1990s.

Keywords: Input-Output tables; Industrial structure; RAS method; Foreign Direct Investment; Innovation (search for similar items in EconPapers)
Pages: 26 pages
Date: 2018-03, Revised 2018-04
New Economics Papers: this item is included in nep-cna, nep-hme, nep-ict and nep-tra
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https://www.unii.ac.jp/erina-unp/archive/en/wp-con ... /2018/05/DP1801e.pdf First version, 2018 (application/pdf)
https://www.unii.ac.jp/erina-unp/archive/en/wp-con ... 018/05/DP1801-2e.pdf Revised version, 2018 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:eri:dpaper:1801-2e

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