THE EFFECTS OF INNOVATION ON THE ECONOMIC GROWTH OF CHINA

The Chinese economy is well decorated and unarguably outstanding in its endeavors.For almost four decades now, it has been experiencing rapid growth rates, transforming the nation into ginormous economic power in the world. Arguably, the 1978 reform initiative retrospectively meant a shift from an extensive agriculture-based economy to an innovative, and industrialized manufacturing hub. Thus, this paper seeks to give a clear- cut analysis by applying the multiple time series regression on the nexus between innovation and the economic growth in China during the period (2000-2020). In order to provide a sound research, the study is interested in answering the following questions, what role does innovation have in the Chinese economy,? To what extent does “innovate-implement initiative” determine the Chinese economic development ? Answering the above questions tis relevantly deal in understand ing the effects of innovation to the economic development of China and why innovation is significant to the nations future KEYWORDS: economic growth, innovation , research and development, China