Research on the Non-linear Relationship between Inter-Regional Industrial Transfer and Technological Innovation Ability of the Western Region

Mi Zhang

Abstract


Based on the panel data of 11 provinces and autonomous regions in 2000-2015 in western region, this paper studies the non-linear relationship between inter-regional industrial transfer and technological innovation capability by using panel smoothing transformation (PSTR) model. Different from the existing research, this paper chooses variables such as the urbanization, human capital, economic openness and the technological gap between enterprises in the eastern, middle and western regions as the conversion variables. It is found that there is a single threshold for the above conversion variables. With the continuous increase of the level of the conversion variables, there is a smooth transition mechanism between inter-regional industries and technological innovation. The results show that all of the transitional variables have single thresholds respectively, and inter-regional industrial transfer has a positive impact on regional technology innovation capability when the transitional variables exceed their thresholds and PSTR models tend to high regime．


Keywords


Inter-Region Industry Transfer; Innovation Capability; PSTR Model; Chinese Western Region.

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