The Spillover Effect of Technological Progress Based on Two Sector Model: An Empirical Study of Chinese Manufacturing Sector
Keywords:Spillover effect, Technological progress, Two-sector model.
AbstractAs the technology has the nature of public good, industrial technology innovation activities have positive externalities on related sectors. Two-sector model is built to identify and calculate the spillover effects of technological progress. Specifically, the industry is divided into two sectors, and technological progress in one sector is added to the production function of the other to research the relationship between technological progress in one sector and output growth of the other. Panel data constituted by time-series from 2000 to 2007 and cross-section data of 31 provinces in Chinese manufacturing sectors is used for empirical testing. The conclusion is drawn that there are very significant spillover effects from the technological progress in equipment manufacturing sector on non-equipment manufacturing sector. The estimated results of different divisions prove that the production efficiency of equipment manufacturing sector and equipment updating speed of non-equipment manufacturing sector influence the spillover effects.
Aghion P., Howitt P., 1992. A model of growth through creative destruction. Econometrica, 60(2): 323-351. http://dx.doi.org/10.2307/2951599
Barro R. J., Sala-i-Martin X., 1997. Technological diffusion, convergence, and growth. Journal of Economic Growth, 2(1): 1-26. http://dx.doi.org/10.1023/A:1009746629269
Borensztein E., Gregorio J. D., Lee J. W., 1998. How Does Foreign Direct Investment Affect Economic Growth. Journal of International Economic, 45(1): 115-135. http://dx.doi.org/10.1016/S0022-1996(97)00033-0
Feder G., 1983. On export and economic growh. Journal of development economics, 12(1): 59-73. ttp://dx.doi.org/10.1016/0304-3878(83)90031-7
Findlay R., 1978. Relative Backwardness, Direct Foreign Investment and the Transfer of Technology: A Simple Dynamic Model. Quartely of Journal of Economics, 92(1): 1-16. http://dx.doi.org/10.2307/1885996
Gong Liutang, Xie Danyang, 2004. Factor Mobility and Dispersion in Marginal Products: A Case on China. Economic Research Journal, 39(1): 45-53.
Huang Yongfeng, Ren Ruoen, Liu Xiaosheng, 2002. Capital Stock Estimates in Chinese Manufacturing by Perpetual Inventory Approach. China Economic Quarterly, 1(1): 377-396.
Koizumi T., Kopecky K.J., 1980. Foreign Direct Investment, Technology Transfer and Domestic Employment Effects. Journal of International Economics, 10(1): 1-20. http://dx.doi.org/10.1016/0022-1996(80)90028-8
Markusen R., Venables A.J., 1999. Foreign Direct Investment as a Catalyst for Industrial Development. European Economic Review, 43(2): 335-356. http://dx.doi.org/10.1016/S0014-2921(98)00048-8
Odedokun M. O., 1996. Alternative econometric approaches for analyzing the role of the financial sector in economic growth: time-series evidence from LDCs. Journal of Development Economics, 50(1): 119-146. http://dx.doi.org/10.1016/0304-3878(96)00006-5
Perkins D.H., 1998. Reforming China's Economic System. Journal of Economic Literature, 31(2): 601-645.
Ram R., 1985. Exports and Economic Growth: Some Additional Evidence. Economic Development and Cultural Change, 33(2): 415-425. http://dx.doi.org/10.1086/451468
Ram R., 1987. Exports and Economics Growth in Developing Countries: Evidence from Time-series and Cross-section data. Economics Development and Cultural Change, 36(1): 51-72. http://dx.doi.org/10.1086/451636
Robert W., Alexander J., 1994. The Government Sector, the Export Sector and Growth. De Economist, 142(2): 211-220. http://dx.doi.org/10.1007/BF01388166
Rodriguez-Clare A., 1996. Multinationals, Linkages, and Economic Development. American Economic Review, 86(4): 852-873.
Romer P.M., 1990. Endogenous Technology Change. Journal of Political Economy, 98(5): 71-102. http://dx.doi.org/10.1086/261725
Wang Dewen, Wang Meiyan, Chen Lan, 2004. China's Industrial
Restructuring, Efficiency and Its Labor Allocation. Economic Research Journal, 39(4): 41-49.
Wang E. C., 2000. A dynamic two-sector model for analyzing the interrelation between financial development and industrial growth. International Review of Economics and Finance, 9(3): 223-241. http://dx.doi.org/10.1016/S1059-0560(99)00052-0
Wang E. C., 1999. Externalities between financial and real sectors in the development process. International Advances in Economic Research, 5(1):149-150. http://dx.doi.org/10.1007/BF02295046
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) after official publication, as it can lead to productive exchanges as well as greater citation of published work (See The Effect of Open Access).