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IT, R&D and Productivity of Chinese Manufacturing Firms

Kazuyuki Motohashi and Yuan Yuan

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: This paper analyzes the productivity performance of Chinese manufacturing firms from 1995 to 2003 by using a large-scale firm-level dataset from the National Bureau of Statistics, Peoples Republic of China. Over this period, a large number of firms were converted to stock holding companies, and an increasing presence of foreign-owned companies further accelerated structural changes in Chinese industry sectors. It is found that such changes of ownership positively contribute to aggregate productivity growth. In addition, IT and R&D intensity is positively correlated with firm-level productivity growth. However, we cannot find a positive impact of either IT or R&D on productivity after controlling reverse causality of productivity on IT and R&D investments.

Pages: 19 pages
Date: 2009-02
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Citations: View citations in EconPapers (3)

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