Endogenous Technological Change Model and Economic Growth in China: A Firm-Level Analysis

Ofei, Edmund Okraku (2020): Endogenous Technological Change Model and Economic Growth in China: A Firm-Level Analysis.

Abstract

China’s economic growth has been impressive since the 1978 reforms and even much better in the last two decades. The dominant composition of China’s merchandized exports having changed from less sophisticated primary goods during the reforms to more sophisticated machinery and electronic products in recent years, and hence rapid economic growth, there has been an increasing need to investigate the existence of evidence of the predictions of the endogenous technological change model in China’s growth especially since capital accumulation, the factor which is widely credited to have propelled growth in China becomes obsolete with increasing quantities. The study therefore employs a combination of logistic regression, OLS, and high-dimension fixed effects to examine the existence of the growth inducing 3 formal sectors of the Romer (1990) model. The findings show China’s to have properly implemented the endogenous technological change model and transitioned from their prior dependence on capital accumulation.

• Item Type: MPRA Paper
• Language: English
• Keywords: logit, R&D, technological change, China
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O32 - Management of Technological Innovation and R&D; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence

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