DIFFUSION OF INNOVATIONS, KNOWLEDGE SPILLOVERS AND ECONOMIC GROWTH OF THE REGIONS OF KAZAKHSTAN: MUTUAL IMPACT

Purpose The purpose of this paper is to analyse the impact of foreign direct investment (FDI) on urban-rural income inequality in China. Design/methodology/approach This study uses the provincial-level panel data and employs the fixed-effects instrumental variable regression technique to investigate empirically the impact of FDI on urban-rural income inequality in China. Findings The study finds that while FDI has directly contributed to reducing urban-rural income inequality through employment creation, knowledge spillovers and contribution to economic growth, FDI has also contributed to increasing urban-rural income inequality through international trade. Practical implications The study has some policy implications. First, as the study finds that FDI not only contributes to reducing urban-rural income inequality through employment creation, knowledge spillovers and contribution to economic growth, but also contributes to increasing urban-rural income inequality through international trade, therefore, apart from improving local economic and technological conditions to attract more FDI inflows, China should re-design FDI policies by shifting away from encouraging export-oriented FDI to encouraging FDI flows into the industries and sectors in line with China’s overall economic structural adjustments and industrial upgrading. Second, policies should focus on increasing investment in infrastructure development and in public education, which not only can reduce urban-rural income inequality but also can attract more FDI inflows. And finally policies should be designed to accelerate urbanisation development by focusing on urban-rural integrated development, household registration system reform and proper settlement of rural migrants in urban areas, thus reducing urban-rural income inequality. Originality/value The paper makes two major contributions to the literature. First, the paper adopts the fixed-effects instrumental variable regression technique to deal with the endogeneity issues in estimating the impact of FDI on urban-rural income inequality, producing more consistent estimates. Second, the paper investigates not only the direct impact of FDI on urban-rural income inequality through the effects of employment creation, knowledge spillovers and contribution to economic growth, but also the indirect impact of FDI on urban-rural income inequality through its activities in international trade, adding new empirical evidence to the sparse literature on the impact of FDI on income inequality in China.

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Human capital, knowledge spillovers, and one kind of semi-endogenous regional economic growth

Letters in Spatial and Resource Sciences ◽

10.1007/s12076-013-0092-9 ◽

2013 ◽

Vol 6 (3) ◽

pp. 121-135 ◽

Cited By ~ 1

Author(s):

Amitrajeet A. Batabyal ◽

Hamid Beladi

Keyword(s):

Economic Growth ◽

Human Capital ◽

Knowledge Spillovers ◽

Regional Economic Growth ◽

Regional Economic

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Knowledge spillovers and diffusion of innovations as a driving force of economic development on the example of labor migration of researchers

The economy: strategy and practice ◽

10.51176/jesp/issue_2_t10 ◽

2020 ◽

Vol 15 (2) ◽

pp. 115-126

Author(s):

Lazat Spankulova ◽

Azamat Kerimbayev ◽

Eldar Nuruly ◽

Dastan Korgasbekov ◽

Zhansaya Lakhbaevа

Keyword(s):

Economic Development ◽

Labor Migration ◽

Diffusion Of Innovations ◽

Driving Force ◽

Knowledge Spillovers ◽

And Diffusion

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Misure di agglomerazione spaziale nei Sistemi Locali del Lavoro siciliani

RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO ◽

10.3280/rest2009-001005 ◽

2009 ◽

pp. 104-136

Author(s):

Maria Davě ◽

Isidora Barbaccia

Keyword(s):

Economic Activity ◽

Diffusion Of Innovations ◽

Knowledge Spillovers ◽

Economic Activities ◽

Geographic Concentration ◽

Agglomeration Process ◽

Local Labour ◽

Urban Contexts ◽

The Empirical Analysis ◽

Employment Data

- This paper examines the links among productive specialization, variety of the economic environment and knowledge spillovers on the basis of the territorial analyses present in the current literature. With the aim of identifying localization benefits in a particular area, some aspects of business settling are compared with trends in the development of economic activities and, particularly, with agglomeration process of the firms. Methods and Results The empirical analysis will be carried out pointing to the dynamics of employment consequent to the effects of the externalities above mentioned. Employment data are taken from the Manufacturing and Service Censuses of the years 1981, 1991 and 2001 and refer to the 77 Sicilian Local Labour Systems. Precisely, data pertain to the following sections of the classification ATECO 2002: Mining and quarrying (C), Manufacturing (D) and Total private services (G, H, I, J, K). We consider some suitable economic indicators to depict the characteristics of concentration: _ localization ratios for studying the evolutionary trends in specialization for different types of economic activity; _ diversity measures, based on a Hirschman-Herfindahl index, suggesting the presence of Jacobs-type dynamic externalities or, on the contrary, the operativeness of MAR dynamic effects; _ competition indices to gather information about the competition levels of the markets depending on their structure; _ agglomeration indices, to measure the geographic concentration of the economic activity connected to high and/or increasing industrial concentration levels in the adjacent LLS. Conclusions The agglomeration process results from inter-sector links, easing the diffusion of innovations thanks to the variety of urban contexts. Agglomeration forces appear to be outweighed, especially since 2001, by the influence of co-agglomeration factors due to the presence, in the same local reality, of small-sized enterprises belonging to different sectors. Owing to the increasing interdependence among sectors, these effects caused a redistribution of employment among the different groups of economic activities. The indexes showed how, during the inter-census gaps, a despecialization trend took over, bringing local production structures constantly closer to the average regional values.

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