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Innovation factor double circulation: Cross-border mobility and the manufacturing industry's total factor
1School of Management of Xi`an University of Architecture and Technology, Xi`an, China.
Objectives:
The improvement of the manufacturing industry's total factor productivity depends not only on innovation factor double circulation, but also on cross-border mobility to a large extent.
Methodology:
This paper constructs a model that demonstrates the impact of innovation factor double circulation and cross-border flow on the manufacturing industry's total factor productivity, and it seeks to estimate this impact by using panel data from China's manufacturing industry taken from the period 2009-2020.
Findings:
It finds the path dependence of innovation factors significantly increased their double circulation cost, and did not significantly improve the manufacturing industry's total factor productivity.
Conclusion:
It finds the path dependence of innovation factors significantly increased their double circulation cost, and did not significantly improve the manufacturing industry's total factor productivity. Cross-border flow improves the marginal efficiency of innovation factors, realizes the spatial agglomeration of high-end innovation factors and greatly promotes the double circulation of innovation factors in a way that effectively improves the manufacturing industry's total factor productivity.
Implications:
These conclusions have profound policy implications: cross-border flows can promote the incremental adjustment of innovation factors; fully release the development potential and toughness of the dual circulation of innovation factors; and are essentially conducive to improving the manufacturing industry's total factor productivity.
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