| ID | 149769 |
| Title Proper | Self-selection and performance of R&D input of heterogeneous firms |
| Other Title Information | evidence from China's manufacturing industries |
| Language | ENG |
| Author | Ke, Shanzi ; Feng, Ping |
| Summary / Abstract (Note) | Applying the theories of heterogeneous firms and the propensity score matching difference-in-differences (PSM-DID) method to a rich dataset of Chinese manufacturing firms, this paper examines the self-selection of firm-level R&D input and estimates the net effect of R&D on productivity. The analysis shows that (1) for Chinese manufacturing firms as a whole, R&D input is influenced by firm productivity: more productive firms are more likely to invest in R&D; (2) controlling for the self-selection effect, the net output elasticities of R&D input in one year and two years after R&D input are 3.92% and 5.25%, respectively; (3) although state-owned enterprises (SOEs) are more likely than all other ownership groups to invest in R&D, the R&D input is not productive; (4) although enterprises owned by investors outside of Mainland China are the least likely to invest in R&D, the output elasticity of R&D is more significant and larger in this group than in SOEs and privately owned Chinese firms; and (5) surprisingly, the net effect of R&D is not significant in high-tech industries. Policy implications are derived from the findings. |
| `In' analytical Note | China Economic Review Vol.41 ; Dec 2016 : p.181–195 |
| Journal Source | China Economic Review 2016-12 |
| Key Words | Heterogeneous Firms ; Self-Selection ; PSM-DID Method ; Net Effect of R&D |