Technology Transfer and Early Industrial Development: Evidence from the Sino-Soviet Alliance

Michela Giorcelli and Bo Li

No 29455, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper studies the long-term effects of technology and know-how transfers on structural transformations. In the 1950s, the Soviet Union supported the construction of the 156 Projects, which were large-scale, capital-intensive industrial clusters in China. These projects included a technology transfer, consisting of state-of-the-art Soviet machinery and equipment, and a know-how transfer, via the training of Chinese engineers, production supervisors, and high-skilled technicians by Soviet experts. We use newly assembled data that follow steel plants for over four decades, and we exploit natural variation in the transfers they eventually received. We find that, while production advantages stemming from Soviet technology faded away if not complemented with training, the know-how transfer had a long-lasting impact on plant performance, stimulated technology upgrade when China was a closed economy, and increased exports to the Western world when China engaged in international trade. The know-how transfer also generated productivity and technology spillovers onto complementary establishments.

JEL-codes: L2 M2 N34 N64 O32 O33 (search for similar items in EconPapers)
Date: 2021-11
New Economics Papers: this item is included in nep-cis, nep-cna, nep-cse, nep-his, nep-ppm and nep-tra
Note: DAE PR
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Citations: View citations in EconPapers (8)

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