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on China |
| By: | Li, Hao-Ching; Lee, Wen-Chieh; Ko, Bo-Ting |
| Abstract: | This paper sounds an alarm about disparate efficiencies among China’s regions in the allocation of innovation inputs. A theoretical measure of misallocation is adopted to gauge the distortions that exacerbate the inefficiency of resource allocations across geographic innovation units; these units’ usage of innovative inputs reveals the level of misallocations prevalent within the Chinese economy. The measure of innovation misallocation is computed by utilizing a micro dataset based on information from the China Statistical Yearbook for Science and Technology (CSYST) from 1999 to 2012. In addition, this paper probes the factors that co-move with China’s innovation resource misallocations. We find that, although an advanced financial market is beneficial to innovation efficiency in China, both the government’s extensive development of transportation infrastructure and the preferential treatment given to state-owned enterprises (SOEs) and foreign-invested enterprises (FIEs) negatively correlate with innovation efficiency. We conclude that emerging economies that are experiencing R&D input expansion, such as China, should be cautious in ensuring efficient resource allocations. |
| Keywords: | Resource misallocation; Innovation efficiency; Financial market; Infrastructure investment; Preferential treatment |
| JEL: | O11 O32 O47 |
| Date: | 2016–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:77998&r=cna |
| By: | Pérez Ludeña, Miguel |
| Abstract: | China has become the third largest source of FDI in the world, only behind the United States and Japan. Chinese outward FDI continues to grow every year, but inflows into Latin America have remained stagnant since the year 2010 when a large wave of acquisitions introduced many Chinese companies to the region. They also remain very concentrated on the extraction of natural resources and in a handful of countries. Slower growth in China, and lower commodity prices may force some Chinese companies to change their strategy and start looking for overseas markets in new sectors, particularly in services. Although in the long term Chinese companies can only be expected to increase their outward FDI, excessive debt can restrain their growth in the short run. |
| Keywords: | INVERSIONES, INVERSION EXTRANJERA DIRECTA, EMPRESAS TRANSNACIONALES, SECTOR PRIMARIO, PRODUCTOS MANUFACTURADOS, INFRAESTRUCTURA FISICA, INVESTMENTS, FOREIGN DIRECT INVESTMENT, TRANSNATIONAL CORPORATIONS, PRIMARY SECTOR, MANUFACTURES, PHYSICAL INFRASTRUCTURE |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col026:41134&r=cna |