Has R&D contributed to productivity in China? The role of basic, applied and experimental R&D activities in China
![https://commons.wikimedia.org/wiki/File:Yuzhong,_Chongqing,_China_(20256770832).jpg Photo by Thomas Bächinger on Wikimedia Commons](https://acde.crawford.anu.edu.au/sites/default/files/styles/anu_doublenarrow_440_220/public/events/images/2021-06/800px-yuzhong_chongqing_china_20256770832.jpg?itok=h999dW6c)
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PhD Seminar (Econ)
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We estimate the effect of three types of Research and Development (R&D) activities on Total Factor Productivity (TFP) across the Chinese provinces during 1998-2018. We use novel data at the provincial level in China and apply the panel data cointegration and spatial regression approaches. Our empirical results, robust to different specifications and control variables, show a significant positive effect of overall R&D stock on productivity. However, when disaggregated between basic, applied and experimental, we find that the positive effect has emanated from experimental R&D stock. No significant results or negative results when significant are observed for basic R&D stock.
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