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Direct effect of ownership and technology import: Firm level evidence from large and medium-enterprises in Shanghai

Author

Listed:
  • ZHU Pingfang

    (Research Institute of Econometrics, Shanghai University of Finance and Economics, Shanghai 200433, China; Center for Economic Studies, Shanghai Jiao Tong University, Shanghai 200030, China)

  • LI Lei

    (Research Institute of Econometrics, Shanghai University of Finance and Economics, Shanghai 200433, China)

Abstract

This paper explores the direct effect of ownership and technology imports under the framework of neoclassical economic theory. The econometric analysis is based on panel data from a random sample of large and medium-enterprises in Shanghai, during the period of 1998 to 2003. The results show that Sino-foreign joint ventures, Sino-foreign cooperative enterprises and foreign-funded enterprises (SANZI) enjoy higher labor productivity and total factor productivity (TFP) than domestic enterprises. Intra-firm diffusion of non-codified technology, proxied by ownership, is the main source of their better performance, whereas internally transferred codified technology makes little contribution to TFP. For state-owned enterprises, codified technology imports have significantly raised both labor productivity and TFP, but such positive effect is significantly dependent on the S&T human resource. In contrast, no evidence supports that introduction of foreign technology has enhanced the productivity in domestic nonstate-owned enterprises. The empirical results indicate that SANZI do not have a distinct advantage in their codified technology. In addition, inadequate investment in assimilation process and research and development together with inefficient management of science and technology activities, may impede the use of imported technology.

Suggested Citation

  • ZHU Pingfang & LI Lei, 2007. "Direct effect of ownership and technology import: Firm level evidence from large and medium-enterprises in Shanghai," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 2(1), pages 74-91, March.
    • Handle: RePEc:fec:journl:v:2:y:2007:i:1:p:74-91
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    File URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-007-0004-2
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    More about this item

    Keywords

    technology import; direct effect; FDI; labor productivity; TFP;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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