Impact of R&D Investment and Network Penetration on Human Development: Evidence from China.

Abstract

This paper measures the human development indices of 31 inland provinces (municipalities) in China in a continuous time series during 2000-2017 according to the 2010 HDI compilation method. It uses a geographically and temporally weighted regression model for conducting an empirical study on the effects of R&D investment and network penetration on human development in each province (municipality) of China. There is significant spatial and temporal heterogeneity in the impact of R&D investment and network penetration on human development across provinces (municipalities) in China due to differences in resource endowments and economic and social development. For R&D investment, eastern provinces (municipalities) have mostly positive effects on human development, and central regions have mostly weak positive or negative effects. In contrast, western provinces (municipalities) show different development paths, with weak positive effects in the early stage and significant positive effects after 2010. Most provinces (municipalities) show a continuous and increasing positive effect for network penetration. The marginal contributions of this paper are mainly in improving the shortcomings in research perspectives, empirical methods, and research data in the study of human development influencing factors in China relative to the study of HDI itself in terms of measurement or application dimensions. This paper constructs a human development index for China, analyzes its spatial and temporal distribution, and explores the impact of R&D investment and network penetration on human development in China, with the hope of providing lessons for China and developing countries to promote the level of human development and cope with the pandemic.