Premium
Uncovering the Relationship between FDI, Human Capital and Technological Progress in Chinese High‐technology Industries
Author(s) -
Zhao Guoqing,
Zhang Zhongyuan
Publication year - 2010
Publication title -
china and world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.815
H-Index - 28
eISSN - 1749-124X
pISSN - 1671-2234
DOI - 10.1111/j.1749-124x.2010.01182.x
Subject(s) - foreign direct investment , spillover effect , human capital , productivity , total factor productivity , technical change , technological change , panel data , technical progress , business , capital (architecture) , industrial organization , investment (military) , economics , international trade , international economics , market economy , macroeconomics , econometrics , history , archaeology , politics , political science , law
Abstract Using a panel dataset for 28 sub‐industries from 5 Chinese industries from 1995 to 2006, this paper examines the impact of human capital, R&D expenditure and FDI spillover on the productivity improvement of Chinese high‐technology industries. The whole industry sample results suggest that human capital promotes total factor productivity, technical change and technical efficiency change, but that FDI lowers all of these factors in Chinese high‐technology industry. When we distinguish between types of ownership structure in the industries, we find that human capital improves technical change but lowers technical efficiency change, whereas FDI only improves technical efficiency change in state‐owned and state‐controlled enterprises but reduces technical change in state‐owned and state‐controlled enterprises and joint ventures.