The Effects Of Public Infrastructure And R&D On The Productivity Of Manufacturing Industries In China

Public infrastructure and R&D play an important supporting role in China's economic and social development. Infrastructure is a necessary prerequisite for national and regional economic development, and R&D is an important driver of economic growth. At the same time, infrastructure and R&D investment is the basis for development and upgrading of the manufacturing industry. In China, the development of manufacturing industry largely due to government investment in infrastructure, and R&D investment is the key to enhance the productivity of manufacturing industries. Therefore, in the case of China in order to cope with the current financial crisis adjusts the manufacturing industry, it is very important and urgent that we study the relationship between public infrastructure and R&D and manufacturing productivity, and provide ideas for accelerating the development of China's manufacturing industries.Based on the panel data of China's 20 manufacturing industries from 1996 to 2009, in this paper we use the econometric models and analysis the effects of public infrastructure and R&D on the cost structure and productivity of manufacturing industries in China. The result shows that the increase in public infrastructure investment can reduce the average production costs of most of the manufacturing industries, and the growth of the public R&D investment also can reduce the average production costs of some of the manufacturing industries, and there are positive and negative differences in the elasticity of public infrastructure and R&D on the demand of the labor force, capital inputs and intermediate goods and public R&D has a significant positive impact on the productivity of high-tech manufacturing industries and non-high-tech manufacturing industries...