Innovation and Regional Economic Growth in China

University essay from Lunds universitet/Ekonomisk-historiska institutionen

Abstract: Based on historical data and facts, China have long been a rich country to the global extent, China’s economic growth has been remarkable during the last few decades; during which, from what I see, the innovation boom after its opening to the world (ever since the end of 20th century) had played significant role during the process. In this paper, I will test my hypothesis in a quantitative way to see if the innovation in China in a regional level is significant for my target cities’ economic growth in the last two decades, based on the model I build up (based on Solow Growth model) with the data from National Bureau Statistics of China, I will run regression for the model so I can see the results to see if the measurement I use for innovation is significant for the regional economic growth, apart from this, I will compare the results among cities to see if that cities with higher innovation resulted in a higher economic growth and also see if I can find out which specific innovation field contributed most to the economy. The aim of this article is to explore if there is a specific relationship between innovation and economic growth and what the relationship is in the target cities I choose in China.

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