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on China |
| By: | Yu, J. (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics); Nijkamp, P. |
| Abstract: | The recently announced Independent Innovation Strategy (IIS) signifies the climax of China’s technology catch-up effort during the past 30 years. This paper investigates the efficacy of, and prospects for this effort by reviewing comments from the relevant literature, by conducting a theoretical analysis based on industrial economics and by testing hypotheses with the latest empirical evidence. Our results suggest a bleak prospect for IIS if the Chinese government retains its excessive administrative protection of state-owned enterprises, and a long struggle ahead for China to finally push further into the technology frontier. |
| Keywords: | state monopoly; R&D; independent innovation; state-owned enterprise |
| JEL: | L12 O38 P31 |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:vuarem:2008-9&r=cna |
| By: | Fleisher, Belton M. (Ohio State University); Li, Haizheng (Georgia Tech); Zhao, Min Qiang (Ohio State University) |
| Abstract: | We study the dispersion in rates of provincial economic- and TFP growth in China. Our results show that regional growth patterns can be understood as a function of several interrelated factors, which include investment in physical capital, human capital, and infrastructure capital; the infusion of new technology and its regional spread; and market reforms, with a major step forward occurring following Deng Xiaoping’s “South Trip” in 1992. We find that FDI had much larger effect on TFP growth before 1994 than after, and we attribute this to emergence of other channels of technology transfer when marketization accelerated. We find that human capital positively affects output per worker and productivity growth. In particular, in terms of its direct contribution to production, educated labor has a much higher marginal product. Moreover, we estimate a positive, direct effect of human capital on TFP growth. This direct effect is hypothesized to come from domestic innovation activities. The estimated spillover effect of human capital on TFP growth is positive and statistically significant, which is very robust to model specifications and estimation methods. The spillover effect appears to be much stronger before 1994. We conduct cost-benefit analysis and a policy “experiment,” in which we project the impact of increases in human capital and infrastructure capital on regional inequality. We conclude that investing in human capital will be an effective policy to reduce regional gaps in China as well as an efficient means to promote economic growth. |
| Keywords: | China, TFP growth, economic growth, human capital, infrastructure |
| JEL: | O15 O18 O47 O53 |
| Date: | 2008–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp3576&r=cna |
| By: | Katrina Mullan (University of Cambridge, Department of Land Economy); Andreas Kontoleon (University of Cambridge, Department of Land Economy); Tim Swanson (University College London, Department Economics and School of Laws); Shiqiu Zhang (Peking University, College of Environmental Sciences) |
| Abstract: | In this paper, we estimate the impact on local household livelihoods of the Natural Forest Protection Programme (NFPP), the largest logging ban programme in the world that aims to protect watershed and conserve natural forests. In doing so we use a series of policy evaluation micro-econometric techniques to assess the impacts of the NFPP on two interrelated facets of household livelihoods, namely income and off farm labour supply. We find that the NFPP has had a negative impact on incomes from timber harvesting but has actually had a positive impact on total household incomes from all sources. Further, we find that off farm labour supply has increased more rapidly in NFPP areas than non-NFPP areas. This result is strongest for employment outside the village. On the basis of these results policy implications for household livelihoods are drawn. |
| Keywords: | Natural Forest Protection Programme, policy evaluation, difference in differences, propensity score matching, China, income impacts, off farm labour |
| Date: | 2008 |
| URL: | http://d.repec.org/n?u=RePEc:lnd:wpaper:200834&r=cna |