Financial Support and Electronic Communications Industry: An Analysis Based on Chinese Provincial Panel Data

Abstract

Based on spatial panel data models and province data of Chinese electronic communications industry in 1997-2007, this paper gets an estimate of Chinese electronic communications industry’s province level production fuction.We focus on the source of the fund in scientific and technological activities funding. The result shows that the source of load contributes much less output of Chinese electronic communications industry than the source of funded by the investors themselves, but higher than the source of government. To explain the result, we must consider the efficiency in the conversion of fund to capital and the efficiency of capital.