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Study on Knowledge Spillover Effect on Development of Manufacturing

Author: DanLingYu
Tutor: HanYao
School: Nanjing University of Finance and Economics
Course: National Economics
Keywords: Knowledge Spillover Manufacturing Spatial Econometrics
CLC: F424
Type: Master's thesis
Year: 2011
Downloads: 65
Quote: 0
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Abstract


Manufacturing is the engine in process of China’s economic development. Since more than 30 years of reform and opening, manufacturing industry has made more than 40% contribution to China’s GDP and absorbed nearly half of the urban working population. But for a long time, the growth of China’s manufacturing industry mainly depends on large-scale investment in natural resources, capital and labor, largely resulting in extremely unreasonable industry structure. Since the 1980s, knowledge spillover effect on promoting the industry development has appeared and the study of this becomes a research hotspot.However, due to knowledge spillover is a rather abstract and vague concept, but also influenced by geo-spatial factors, no consensus was reached. Three are three different viewpoints of knowledge spillover effect on economic growth, MAR spillover believed that the specialization can promote the knowledge spillover, thus forecast that the monopoly is advantageous to the innovation and the growth; Jacobs spillover indicate that the most important knowledge overflow from the different industry’s in enterprise, the diversification and the competition is more advantageous; Porter spillover indicate that the specialization and competition are advantageous to economic growth. View of this, the thesis focuses on knowledge spillover effect on provincial region manufacturing industry by spatial econometric model.The thesis began from basic theory of knowledge spillover, and then defined the content of knowledge spillover, including MAR, Porter and Jacobs spillover. Then, the thesis studied on common mechanism of knowledge spillover and summed up the mechanism of knowledge spillover effect on manufacturing industry: the influence way including conduction, convection and radiation; the effect including scale economy and scope economy. Based on the mechanism, the thesis researched knowledge spillover effect on manufacturing industry by building spatial econometric model. Empirical study draws a conclusion that the diversification, competition and human capital are significant to the manufacturing industry, which means Porter and Jacobs spillover have significant impact on manufacturing industry, while specialization is not significant, meaning the MAR spillover is not significant. In empirical research, the thesis brings in spatial difference and spatial correlation to modify classical linear model and overcome the most previous studies’assumption that manufacturing development due to knowledge spillover is independent, therefore the conclusion is more convictive. Finally, the thesis presented some measures for promoting knowledge spillover effects on manufacturing industry, promoting an innovation-driven development and endogenous growth of manufacturing industry.

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CLC: > Economic > Industrial economy > China Industrial Economy > Industrial construction and development
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