Zhang, Rui and Sun, Kai and Delgado, Michael and Kumbhakar, Subal (2011): Productivity in China's high technology industry: Regional heterogeneity and R&D.
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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.
|Item Type:||MPRA Paper|
|Original Title:||Productivity in China's high technology industry: Regional heterogeneity and R&D|
|Keywords:||China; Research and Development; Productivity; Semiparametric smooth coefficient model|
|Subjects:||C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C14 - Semiparametric and Nonparametric Methods: General
L - Industrial Organization > L0 - General > L00 - General
|Depositing User:||Kai Sun|
|Date Deposited:||31. Jul 2011 18:51|
|Last Modified:||12. Feb 2013 08:50|
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