The Impacts of R&D, Foreign Investment, and Export on Catch- up: Evidence from China Manufacturing Industries
Date Issued
2014
Date
2014
Author(s)
Chien, Ting-Jung
Abstract
Based on China Statistical Yearbook of the year 2006 to 2011, this paper tries to find the motivations which impel the huge productivity growth in China. This study is mainly focus on the labor productivity of 29 different Chinese manufacturing indu- stries in 6 years and considers the trends of R&D input, foreign investment, and ex- ports in each individual manufacturing industries. This paper takes the capital share from foreign countries as a standard to show the productivity gap between the dome- stic firms and foreign firms. In this way, I define the index of “catch-up” to re-insp- ect the comparative advantages of China manufacturing industries among the global economic competition. According to the statistic results gotten from fixed effect mo- del, R&D input, fixed investment from foreign countries and export show a sign- ificant positive effect towards the catch-up index. R&D input and fixed investment are the more crucial factors than export when talking about the motivation of catc- hing up effect. The results also indicate the positive complementation influence wh- ich exists between R&D input and fixed investment towards catch-up index. Based on these empirical results, I may claim that more and more foreign companies has moved to China not only drives the growth of productivity of manufacturing indus- tries in China, but boost up the domestic fir-ms’competitiveness.
Subjects
China manufacturing industry
catch-up effect
R&D
foreign investment
export
labor productivity
Type
thesis
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