DO EXPORTS OF INTERMEDIATE GOODS PROMOTE TECHNOLOGICAL ADVANCEMENT IN CHINA?

Jingmei Ma, Harbin University of Science and Technology, Harbin, Heilongjiang, China
Hongyu Jia, Harbin University of Science and Technology, Harbin, Heilongjiang, China

Published in

INTERNATIONAL JOURNAL OF BUSINESS STRATEGY
Volume 17, Issue 2, p61-72, October 2017

ABSTRACT

The paper establishes a theoretical framework from the view of a developing country to explain the effect of exported intermediated goods on productivity advancement, and presents the role difference between low and high tech-complexity industries. Fundamental and extended model are developed to estimate both aggregate and net technological effect, spillovers and technological advantage of exports in intermediate goods. Results show that: (1) Exports of intermediate goods exert a positive effect on technological progress, and those with high tech-complexity play a more important role than the ones with low tech-complexity. (2) Exports of intermediate goods have positive spillovers in high tech-complexity industries, and negative spillovers are found in low tech-complexity ones, crowding out the production of non-exports. (3) Exports of intermediate goods have remarkable technological advantage over non-exports, and it is especially significant in low tech-complexity industries. Therefore, it seems that there presents a negative correlation between spillovers and technological advantage in exports of intermediate goods.

Keywords

Intermediate goods; tech-complexity; spillovers; technological advantage


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