Effect of Domestic R&D on TFP of Manufacturing Industry—Empirical Study on Provincial Panel Data of China
Huo Ji
Abstract
Huo Ji
Abstract
The paper uses Malmquist method to decompose provincial TFP of Chinese manufacturing industry into technical efficiency and technical progress,and examines the relationship between domestic RD,TFP,technical efficiency and technical progress during the period 2003- 2008. The results show that the growth of domestic RD has significant positive effects on the growth of technical efficiency,however,the growth of domestic RD has no significant negative effects on the growth of TFP and technical progress.
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The paper uses Malmquist method to decompose provincial TFP of Chinese manufacturing industry into technical efficiency and technical progress,and examines the relationship between domestic RD,TFP,technical efficiency and technical progress during the period 2003- 2008. The results show that the growth of domestic RD has significant positive effects on the growth of technical efficiency,however,the growth of domestic RD has no significant negative effects on the growth of TFP and technical progress.
Key concepts: Total factor productivity, Technical progress, China, Panel data, Economics, Malmquist index, Manufacturing, International trade