Technology, Production, and Socio-Economic Indicators at the Macro Level: A Statistical Analysis of the Chinese Regions

Abstract

This study contains a statistical analysis exploring the interrelationships between technology, production and various socio-economic variables in the context of China’s regional macroeconomy. We focus on empirically examining how technology at the macro level is interrelated to production, output, and various macro-level socio-economic indicators. Our statistical analysis shows that a higher level of technology is always associated with socio-economically desirable outcomes on the various chosen macro-level indicators. However, the causality may run bi-directionally. Our empirical results also show that even after the partial effects of all the other macro-level variables are netted out, that is, even when the indirect effects of technology are not considered, the remaining direct effect of technology is still shown to play a very crucial role in determining labor productivity in the production process at the macro level.