Productivity in China's high technology industry: Regional heterogeneity and R&D

Rui Zhang, Kai Sun, Michael Delgado and Subal Kumbhakar

MPRA Paper from University Library of Munich, Germany

Abstract: This paper analyzes the impact of Research and Development (R&D) on the productivity of China's high technology industry. In order to capture important differences in the effect of R&D on output that arise from geographic and socioeconomic differences across three major regions in China, we use a novel semiparametric approach that allows us to model heterogeneities across provinces and time. Using a unique provincial level panel dataset spanning the period 2000-2007, we find that the impact of R&D on output varies substantially in terms of magnitude and significance across different regions. Results show that the eastern region benefits the most from R&D investments, however it benefits the least from technical progress, while the western region benefits the least from R&D investments, but enjoys the highest benefits from technical progress. The central region benefits from R&D investments more than the western region and benefits from technical progress more than the eastern region. Our results suggest that R&D investments would significantly increase output in both the eastern and central regions, however technical progress in the central region may further compound the effects of R&D on output within the region.

Keywords: China; Research and Development; Productivity; Semiparametric smooth coefficient model (search for similar items in EconPapers)
JEL-codes: C14 L00 (search for similar items in EconPapers)
Date: 2011-06-30
New Economics Papers: this item is included in nep-cse, nep-eff, nep-geo, nep-ino, nep-tra and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Productivity in China's high technology industry: Regional heterogeneity and R&D (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:32507

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