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IT, R&D and Productivity of Chinese Manufacturing Firms

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  • MOTOHASHI Kazuyuki
  • YUAN Yuan

Abstract

This paper analyzes the productivity performance of Chinese manufacturing firms from 1995 to 2003 by using a large-scale firm-level dataset from the National Bureau of Statistics, Peoples Republic of China. Over this period, a large number of firms were converted to stock holding companies, and an increasing presence of foreign-owned companies further accelerated structural changes in Chinese industry sectors. It is found that such changes of ownership positively contribute to aggregate productivity growth. In addition, IT and R&D intensity is positively correlated with firm-level productivity growth. However, we cannot find a positive impact of either IT or R&D on productivity after controlling reverse causality of productivity on IT and R&D investments.

Suggested Citation

  • MOTOHASHI Kazuyuki & YUAN Yuan, 2009. "IT, R&D and Productivity of Chinese Manufacturing Firms," Discussion papers 09007, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:09007
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    References listed on IDEAS

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    Cited by:

    1. Yang, Chih-Hai & Lin, Hui-Lin & Li, Hsiao-Yun, 2013. "Influences of production and R&D agglomeration on productivity: Evidence from Chinese electronics firms," China Economic Review, Elsevier, vol. 27(C), pages 162-178.
    2. Sun, Sizhong & Anwar, Sajid, 2019. "R&D activities and FDI in China’s iron ore mining industry," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 47-56.
    3. Lin, Hui-Lin & Li, Hsiao-Yun & Yang, Chih-Hai, 2011. "Agglomeration and productivity: Firm-level evidence from China's textile industry," China Economic Review, Elsevier, vol. 22(3), pages 313-329, September.

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