Effect of China’s technology spillovers on energy intensity in Africa

Empirical studies on the effects of China-African economic relations on energy intensity in Africa are scarce.To fill the gap in the literature,this study investigates the technology spillover effects of the China-Africa trade and investment relations on energy intensity.It uses both linear and nonlinear dynamic panel estimation methods for 42 African countries from 2003 to 2015.The results show that China's technology spillover through imports significantly reduces energy intensity in Africa.The findings are consistent across specifications and sample groups.Moreover,the technology spillover coming from foreign direct investment(FDI)improves energy intensity,particularly in lower-middle-income African countries.The dynamic threshold estimation results show that countries'absorptive ability is important for technology spillover effects of FDI and imports on energy intensity.The results suggest that countries'absorptive capacity should be increased to maximize the benefits of trade and investment technology spillovers.

Research on the Impact of China’s Foreign Trade Technology Spillover on Green Total Factor Productivity of Countries Along the“Belt and Road”:Based on the Institutional Quality Threshold Effect

China’s growing trade with countries along the“Belt and Road”Initiative is accompanied by a focus on green development.Based on the panel data from 2007 to 2018,this paper establishes a threshold regression model to empirically analyze the institutional quality threshold effect of China’s foreign trade technology spillover on the GTFP of countries along the“Belt and Road.”The results show that China’s foreign trade technology spillover has a significant institutional quality double threshold effect on the green total factor productivity of the countries along the“Belt and Road.”As the institutional quality of the countries along the“Belt and Road”crosses a specific threshold value,the impact of China’s foreign trade technology spillover on the green total factor productivity of the countries along the“Belt and Road”has a significant positive promoting effect,and corresponding suggestions are put forward.

“China Shock”or China Dividend?-China GVC Participation’s Effects on Trading Partners’Technological Progress

This paper explores the effects of China’s global value chain(GVC)participation on technological progress in trading-partner countries based on estimated data on value-added trade between China and 52 trading partners.We find that,first,although China’s exports lowered the total factor productivity(TFP)of its trading partners(competitive effect),its imports greatly increased trading partners’TFP(effect of scale).This implies that China’s GVC participation is beneficial to its trading partners’technological progress in the form of a considerable technology dividend effect.Second,China’s export dividend effect compensates for the negative effect of Chinese competition on trading partners’technological progress;the innovation effects attributable to China’s imports reinforce the positive effects of scale on technological progress.When innovation is factored in,the China dividend thus becomes further reinforced.Third,China’s merchandise imports have a diminishing positive effect on technological progress in trading partners as geographical distance increases,but trade in services transcends geographical boundaries,and the positive technological progress effect of China’s service imports do not diminish as distance increases.We find that the“China dividend”from China’s GVC participation is a significant contributor to technological progress in partner nations,and China’s imports are conducive to innovation and technological progress in developed countries in the long run.

Technology Spillover and Licensing Strategy of Patentee

The optimal license proportions with and without technology spillover are analyzed with a game-theoretical approach when a patent-holding firm licensed non-drastic process innovation to his incumbent rivals by means of a first price sealed bid auction. The optimal strategy is obtained through solving the game by backward induction. It is found that the range of optimal license proportion is narrower when there is spillover compared to the no spillover case.

Technological innovation,market proximity,and China's industrial green development

Due to environmental damage and natural resource scarcity,the promotion of industrial green development to spur the industrial economy is of concern to many countries.We construct a theoretical framework of technological innovation,market proximity,and industrial green development and subsequently test it empirically.First,the results reveal that technological innovation is beneficial to industrial green development;technological innovation has a positive impact on industrial green development in adjacent regions through technology spillover,but human capital spillover has the opposite effect;the international market can effectively promote industrial green development,but the domestic market does the opposite.Second,the interaction between technology spillover,human capital spillover,and domestic and international markets is beneficial to industrial green development.However,the interaction between domestic and international markets imposes an inhibitive effect on industrial green development.Based on the findings,we make recommendations to improve the level of industrial green development.

Inter-industry Technology Spillover Effects in China:Evidence from 35 Industrial Sectors

The present paper calculates 35 industrial sectors similarity matrices for the period of 1997-2008 using China s input-output tables for 1997, 2002 and 2007, and uses these to measure inter-industry technology spillover to analyze the spillover effects on industrial sectors lahor productivity. The empirical analysis shows that inter-industry technology spillover has a significant positive effect on the labor productivity of each industry. The elasticity of productivity effects of inter-industry technology spillover is not only larger than that of direct R＆D input, but also increases over time. We group the industries into four major categories and find that the inter-industry technology spillover effect within the categories is, on average, greater than that between the four categories, indicating that technology spillover occurs more easily between similar industries. This research shows that the interindustry technology spillover effect in China has begun to increase, and the government should take advantage of this effect.

Do High-technology Exports Cause More Technology Spillover in China?

The volume of China＇s high-technology exports has grown sharply since the implementation of its export promotion strategy ＂Revitalizing Trade through Science and Technology＂ in 1999. This paper investigates whether technology spillover effects are greater for hightechnology exports than for primary manufactured goods exports. We present a generalized multi-sector spillover model to identify both between-spillover effects from exports towards non-exporters and within-spillover effects among export sectors. Using panel data for 31 provinces in China over the period from 1998 to 2005, we find that although high-technology export sectors have higher productivity compared with other sectors, this productivity advantage does not lead to technology spillover to both domestic sectors and other export sectors, and export technology spillover mainly derives from traditional export sectors rather than high-technology export sectors. As such findings can be largely attributed to the fact that China ＂s high-technology exports depend significantly on processing trade byforeign- invested firms, policy implications are discussed in relation to how to best promote the role of China ＂s highechnology exports during economic expansion.

Does Foreign Direct Investment Affect the Growth of Local Firms? The Case of China's Electrical and Electronics Industry

Does foreign direct investment （FDI） into developing countries affect the growth of local firms in host countries？ Using a dataset of 38 sectors in China ＇s electrical and electronics industry, in this paper, we analyze whether FDI has a positive effect on loeal firms, with technology spillovers, added value and increasing total faetor productivity, or a negative, market stealing, effect. Estimating the relationship between growth of local firms and investment offoreign firms, our results show that FDI is likely to have a negative impact on the growth of local firms in sectors with large disparities in technology and less experience in business. Therefore, local firms lacking in technology need to find markets with no competition from foreign firms or determine strategies to compensate technology disparities.