Empirical Analysis Of China's Government Investment In Science And Technology On The Contribution Of Technological Progress

Our times is an economic world, the national economic situation becomes the key element of weighing national comprehensive strength. Today is a period of science and technology with rapid change, the technological progress has gradually become the important influence factor of national economy development and international influence promotion, it also has become the key motive force of economic development. The technological progress has already become main content and sign of a national comprehensive national strength, the efforts of increasing the input in R&D will heighten the level of a national technological progress effectively.As everyone knows, the government is one of the two major subjects (government and enterprise) of input in R&D. In China, government R&D expenditure is the important component of total R&D expenditure. So, estimate the contribution of government R&D expenditure to technological progress quantitatively in China, and then appraise the R&D policy present to our government and explored the complete way, it is an important subject for research.This study directs against this subject, on the basis of analyzing and commenting forefathers' research results, and then combines practice of government expenditure in R&D of China from 1980 to 2005. Through constructing models, the study makes an empirical analysis of the contribution to the technological progress of government R&D expenditure in China. Beyond that, the author puts forward some corresponding suggestions on how to promote the technological progress better.There are five sections In this study. Section 1 introduces the whole study; it describes the background, defines the concepts, presents the framework and main points, and reviews the related literature. Section 2 analyzes both scale and structure of our government R&D expenditure on the whole. The author believes that the expenditure in R&D of our government is insufficient on the total amount, and we pay more attention to "applied research" and "experimental development", but the degree of attention to "basic research" is not enough. Section 3 makes an empirical analysis of the contribution to the technological progress of government R&D expenditure in China. It is the main part of the study. At first, the author estimates the total factor productivity i.e. TFP, as the variable represented the technological progress. Through the econometrics method, the author calculates every annual TFP value of China during 1980 to 2005; these values have offered the foundation for next research. Then the author carries on factor analysis to the technological progress of China. With the econometric model, the author estimates the contribution to technological progress(TFP) of three factors, which includes government R&D expenditure, business R&D expenditure and foreign technology overflow (international spillover). And the author especially investigates the contribution of government R&D expenditure. The major results are as follows: in China, an increase of 1% in government R&D expenditure generates 0.094% in technological progress from 1980 to 2005.Meanwhile; the average contribution rate to the technological progress of government R&D expenditure is 24.40%, so it is obvious that the government expenditure in R&D promotes the technological progress. Section 4 makes the whole conclusion of the study. And then puts forward some corresponding suggestions, which aim at defining government duty, increasing the government R&D expenditure in scale, adjusting the R&D expenditure structure, and so on.