Do High‐Technology Exports Cause More Technology Spillover in China?

22 Pages Posted: 9 Apr 2012

See all articles by Qun Bao

Qun Bao

Nankai University

Puyang Sun

Nankai University; University of Birmingham; University of Nottingham - Leverhulme Centre for Research on Globalisation and Economic Policy (GEP)

Li Su

Nankai University

Date Written: March‐April 2012

Abstract

The volume of China's high‐technology exports has grown sharply since the implementation of its export promotion strategy “Revitalizing Trade through Science and Technology” in 1999. This paper investigates whether technology spillover effects are greater for high‐technology exports than for primary manufactured goods exports. We present a generalized multi‐sector spillover model to identify both between‐spillover effects from exports towards non‐exporters and within‐spillover effects among export sectors. Using panel data for 31 provinces in China over the period from 1998 to 2005, we find that although high‐technology export sectors have higher productivity compared with other sectors, this productivity advantage does not lead to technology spillover to both domestic sectors and other export sectors, and export technology spillover mainly derives from traditional export sectors rather than high‐technology export sectors. As such findings can be largely attributed to the fact that China's high‐technology exports depend significantly on processing trade by foreign‐invested firms, policy implications are discussed in relation to how to best promote the role of China's high‐technology exports during economic expansion.

Keywords: export composition, high‐technology exports, multi‐sector spillover model, technology spillover

JEL Classification: F11, F14, O19

Suggested Citation

Bao, Qun and Sun, Puyang and Su, Li, Do High‐Technology Exports Cause More Technology Spillover in China? (March‐April 2012). China & World Economy, Vol. 20, Issue 2, pp. 1-22, 2012. Available at SSRN: https://ssrn.com/abstract=2036923 or http://dx.doi.org/10.1111/j.1749-124X.2012.01277.x

Qun Bao (Contact Author)

Nankai University ( email )

94 Weijin Road
Tianjin, 300071
China

Puyang Sun

Nankai University ( email )

94 Weijin Road
Tianjin, 300071
China

HOME PAGE: http://economics.nankai.edu.cn/teac/detail.jsp?no=374

University of Birmingham ( email )

Economics Department
Birmingham, B15 2TT
United Kingdom

HOME PAGE: http://www.economics.bham.ac.uk/people/PhD_Students/sun-puyang.shtml

University of Nottingham - Leverhulme Centre for Research on Globalisation and Economic Policy (GEP) ( email )

University Park
Nottingham, NG7 2RD
United Kingdom

Li Su

Nankai University ( email )

94 Weijin Road
Tianjin, 300071
China

Register to save articles to
your library

Register

Paper statistics

Downloads
2
Abstract Views
378
PlumX Metrics