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JOURNAL OF STRATEGIC INNOVATION AND SUSTAINABILITY


The Diversity, Specialization of High-tech Industrial Structure and Economic Growth in China


Author(s): Xianhui Zhang, Bohdan Pikas, Tenpao Lee, Peigang Liu

Citation: Xianhui Zhang, Bohdan Pikas, Tenpao Lee, Peigang Liu, "The Diversity, Specialization of High-tech Industrial Structure and Economic Growth in China," Journal of Strategic Innovation and Sustainability, Vol. 12, Iss. 1, pp. 99-110

Article Type: Research paper

Publisher: North American Business Press

Abstract:

This paper measures diversity and specialization of China’s high-tech industrial structure using Herfindahl-
Hirschman Index, Shannon-Wiener Index and Kullback-Leibler Divergence. It will analyze the linear and
non-linear relationships between them and economic growth. It will also examine the impacts of the hightech
service sector, manufacturing sector, and the scale of high-tech enterprises on growth. It has been found
that there is a U-shaped non-linear relationship between the internal structure of high-tech industry and
growth, based on provincial panel data. Secondly, the differentiation of high-tech industrial structure on the
national-level and regional-level significantly promotes growth; therefore different optimal structures should
be formed among all provinces. Thirdly, the high-tech service sector which is conductive to growth should be
encouraged to develop. Lastly, to some extent, large and medium-sized high-tech enterprises have negative
impacts on growth, and the development of medium and small-sized high-tech enterprises should be
supported.