Geography, Economic Policy, and Regional Development in China

Many studies of regional disparity in China have focused on the preferential policies received by the coastal provinces. We decomposed the location dummies in provincial growth regressions to obtain estimates of the effects of geography and policy on provincial growth rates in 1996-99. Their respective contributions in percentage points were 2.5 and 3.5 for the province-level metropolises, 0.6 and 2.3 for the northeastern provinces, 2.8 and 2.8 for the coastal provinces, 2.0 and 1.6 for the central provinces, 0 and 1.6 for the northwestern provinces, and 0.1 and 1.8 for the southwestern provinces. Because the so-called preferential policies are largely deregulation policies that have allowed coastal Chinese provinces to integrate into the international economy, it is far superior to reduce regional disparity by extending these deregulation policies to the interior provinces than by re-regulating the coastal provinces. Two additional inhibitions to income convergence are the household registration system, which makes the movement of the rural poor to prosperous areas illegal, and the monopoly state bank system that, because of its bureaucratic nature, disburses most of its funds to its large traditional customers, few of whom are located in the western provinces. Improving infrastructure to overcome geographic barriers is fundamental to increasing western growth, but increasing human capital formation (education and medical care) is also crucial because only it can come up with new better ideas to solve centuries-old problems like unbalanced growth.

Geography, Economic Policy and Regional Development in China

Many studies of regional disparity in China have focused on the preferential policies received by the coastal provinces. We decomposed the location dummies in provincial growth regressions to obtain estimates of the effects of geography and policy on provincial growth rates in 1996–99. Their respective contributions in percentage points were 2. 5 and 3. 5 for the province-level metropolises, 0. 6 and 2. 3 for the northeastern provinces, 2. 8 and 2. 8 for the coastal provinces, 2. 0 and 1. 6 for the central provinces, 0 and 1. 6 for the northwestern provinces, and 0. 1 and 1. 8 for the southwestern provinces. Because the so-called preferential policies are largely deregulation policies that have allowed coastal Chinese provinces to integrate into the international economy, it is far superior to reduce regional disparity by extending these deregulation policies to the interior provinces than by re-regulating the coastal provinces. Two additional inhibitions to income convergence are the household registration system, which makes the movement of the rural poor to prosperous areas illegal, and the monopoly state bank system that, because of its bureaucratic nature, disburses most of its funds to its large traditional customers, few of whom are located in the western provinces. Improving infrastructure to overcome geographic barriers is fundamental to increasing western growth, but increasing human capital formation (education and medical care) is also crucial because only it can come up with new better ideas to solve centuries-old problems like unbalanced growth.

Geography, Economic Policy and Regional Development in China

Many studies of regional disparity in China have focused on the preferential policies received by the coastal provinces. We decomposed the location dummies in provincial growth regressions to obtain estimates of the effects of geography and policy on provincial growth rates in 1996–99. Their respective contributions in percentage points were 2.5 and 3.5 for the province-level metropolises, 0.6 and 2.3 for the northeastern provinces, 2.8 and 2.8 for the coastal provinces, 2.0 and 1.6 for the central provinces, 0 and 1.6 for the northwestern provinces, and 0.1 and 1.8 for the southwestern provinces. Because the so-called preferential policies are largely deregulation policies that allowed coastal Chinese provinces to integrate into the international economy, it is far superior to reduce regional disparity by extending these deregulation policies to the interior provinces than by re-regulating the coastal provinces. Two additional inhibitions to income convergence are the household registration system, which makes the movement of the rural poor to prosperous areas illegal, and the monopoly state bank system that, because of their bureaucratic nature, disburses most of its funds to its large traditional customers, few of whom are located in the western provinces. Improving infrastructure to overcome geographic barriers is fundamental to increasing western growth, but increasing human capital formation (education and medical care) is also crucial because only it can come up with new better ideas to solve centuries-old problems like unbalanced growth.China’s Western, Preferential Policies, economic geography, China’s Regional Growth Pattern

R&D offshoring and technology learning in emerging economies: Firm-level evidence from the ICT industry

This paper studies the impact of the R&D offshoring of multinational enterprises on the firms in host emerging economies. We develop a two-stage non-cooperative game to analyze the strategic interaction between multinational and host country enterprises engaged in R&D investment. An empirical analysis of 12,309 manufacturing firms in the ICT industry in China shows that R&D offshoring has a positive effect on the intensity of the R&D of host country firms. However, the magnitude of the impact depends on both the technological and geographical distance between the multinational and host country firms. The policy implications of these findings are that the governments of host country should be cautious about allowing advanced multinational R&D investment in under-developed sectors, but they should encourage such investment in developed sectors; and that local governments should be involved in R&D policy making because the positive impact of multinational R&D offshoring diminishes as the geographical distance between the multinational and host country firms increases.Research and Development, Offshoring, Spillovers, Emerging Economies

Health biotechnology in China: National, regional, and sectoral dimensions

Biotechnology is one of the knowledge fields particularly targeted by China, as it is considered to open up windows of opportunity for catch-up to the leading economies. However, the seizing of these opportunities requires the existence of an institutional and organizational structure supportive of the introduction and usage of biotechnological knowledge. The present contribution discusses this problem in its national, regional, and sectoral dimensions. By focusing on the biopharmaceutical sector, it is shown that the regulatory environment and the capital market constitute serious bottlenecks to further development. --China,health biotechnology,innovation system,pharmaceutical

Bibliometric data study: assessing the current ranking of the People's Republic of China in a set of research fields : final report to the delegation of the European Commission

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Economic growth across Chinese provinces: in search of innovation-driven gains

In this paper we analyse the impact of R&D on total factor productivity across Chinese provinces. We introduce innovations explicitly into a production function and evaluate their contribution to economic growth in 1993 - 2006. The empirical results highlight the importance and the interaction between local and external research. The evidence indicates that growth in China is not explained simply by factor input accumulation.China; R&D; R&D Spillovers; patents; regional economic growth; semiparametric estimators

Indigenous production and interregional exchange: late second-millennium BC bronzes from the Hanzhong basin, China

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Open innovation development of private colleges in China

Since their large-scale emergence in the 1990s, private colleges in China have achieved significant development along with the transition of Chinese higher education from the elite stage to the universal stage. However, due to institutional deficiencies and resource constraints, private colleges cannot replicate the development model of public colleges and universities. Based on the needs for development and future competition, private colleges have to seek different development paths from public universities in order to break through resource constraints and improve their own development performance. We choose Tianfu College, a private college in China, as a research case, and adopt an inductive qualitative approach and an exploratory case study strategy based on grounded theory, with the development practice of knowledge production as the research subjects. The data is formed through semi-structured interviews, on-site observations, and the collection of secondary data. The research results show that 1) Private colleges in China can achieve good development performance in knowledge production through open innovation strategy. 2) Private colleges in China can adopt resource bricolage to break through resource constraints and achieve open innovation development performance in knowledge production. 3) Top management teams with high achievement needs and high ambiguity tolerance, entrepreneurial oriented organizational culture and organic organization help the private college in China achieve open innovation development performance in knowledge production. Our findings further expand the scope of open innovation research subjects, enrich the content of research on the development model of private colleges, and have positive practical implications for the development of private colleges in China.Desde a sua emergência em larga escala na década de 90 do século passado, as faculdades privadas na China alcançaram, no seu conjunto, um desenvolvimento significativo, que ocorreu juntamente com a transição do ensino superior chinês da fase elitista para a fase de popularização, e depois para a fase de universalização. Contudo, devido a deficiências institucionais e à limitação de recursos, as faculdades privadas não podem replicar o modelo de desenvolvimento das faculdades e universidades públicas. Com base numa necessidade de desenvolvimento realista e de concorrência futura, as faculdades privadas têm de procurar vias de desenvolvimento diferentes, de modo a ultrapassar as limitações de recursos e melhorar o seu próprio desempenho. Escolhemos Tianfu College, uma faculdade privada na China, como caso de investigação, e adotamos uma abordagem qualitativa indutiva e uma estratégia exploratória de estudo de caso baseada na Grounded Theory, sendo o tema de investigação a prática de desenvolvimento da produção de conhecimento. Os resultados da investigação mostram que 1) Um colégio privado na China pode alcançar um bom desempenho de desenvolvimento na produção de conhecimento através de uma estratégia de inovação aberta. 2) Um colégio privado na China pode adotar uma abordagem da bricolagem de recursos para quebrar as restrições de recursos e obter um desempenho de desenvolvimento de inovação aberta na produção de conhecimento. 3) Uma equipa de gestão de topo com elevada necessidade de concretização e elevada tolerância à ambiguidade, uma cultura organizacional orientada para o empreendedorismo e uma estrutura orgânica, são condições para se alcançar um elevado desempenho na produção de conhecimento através de inovação aberta. Os resultados permitem alargar o âmbito da investigação em inovação aberta, enriquecem o conteúdo da investigação sobre modelos de desenvolvimento das faculdades privadas, e têm implicações práticas positivas para o desenvolvimento das faculdades privadas na China