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

This paper analyzes the impact of reseach and development 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 aross three major regions in China. | MPRA Munich Personal RePEc Archive Productivity in China s high technology industry Regional heterogeneity and R D Zhang Rui Sun Kai Delgado Michael and Kumbhakar Subal 30. June 2011 Online at http 32507 MPRA Paper No. 32507 posted 31. July 2011 17 21 Productivity in China s High Technology Industry Regional Heterogeneity and R D Rui Zhanga Kai Sunb Michael S. Delgadob Subal C. KumbhakaC aDepartment of Financial Engineering Sichuan University 610064 b Department of Economics Binghamton University Binghamton NY 13902 USA 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 R D Productivity Semiparametric smooth coefficient model SPSCM 1. Introduction In 2007 China s high technology industry consisting of for example the .