China's Sustained Economic Growth: Do Direct R&D Spillovers Matter?

17 Pages Posted: 15 Sep 2010

See all articles by Renai Jiang

Renai Jiang

Xi'an Jiaotong University (XJTU)

Hong Cai

affiliation not provided to SSRN

Yali Li

affiliation not provided to SSRN

Hong Li

Brandeis University

Abstract

Using data from 1986–2005, the present paper estimates the impact of direct knowledge spilled over from G-7 countries on China's economy. We use telephone line penetration rates and personnel flows to estimate the direct spillover effect. Our results show that direct knowledge spillovers through telecommunication networks and personnel flows are important components of international R&D spillovers in China. These direct channels of spillover effectively accelerate China's economic growth. Therefore, China should invest more in human capital and in its telecommunication network to enhance the absorptive capacity of direct R&D spillovers, and to increase communication with other nations, in particular the USA and Japan. More subsidies to domestic R&D research and purchase of intermediate goods will help to raise China's R&D intensity.

Suggested Citation

Jiang, Renai and Cai, Hong and Li, Yali and Li, Hong, China's Sustained Economic Growth: Do Direct R&D Spillovers Matter?. China & World Economy, Vol. 18, No. 5, pp. 37-53, September-October 2010, Available at SSRN: https://ssrn.com/abstract=1677108 or http://dx.doi.org/10.1111/j.1749-124X.2010.01211.x

Renai Jiang (Contact Author)

Xi'an Jiaotong University (XJTU)

26 Xianning W Rd.
Xi'an Jiao Tong University
Xi'an, Shaanxi 710049
China

Hong Cai

affiliation not provided to SSRN

No Address Available

Yali Li

affiliation not provided to SSRN

Hong Li

Brandeis University ( email )

Waltham, MA 02454
United States

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