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Technical progress and induced innovation in China : a variable profit function approach

Wong, K. K. Gary; Fleisher, Belton M.; Min Qiang Zhao; … - 2020

productivity (TFP) growth in China. Our primary goal is to test Hicks' induced innovation hypothesis by examining whether technical … find that not only is wage-induced innovation significant and quantitatively important, but also that it substantially … is predominantly driven by wage-induced innovation along with massive injection of heavily subsidized physical inputs in …

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