THE EFFECTS OF INNOVATION ON THE ECONOMIC GROWTH OF CHINA

Abstract

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 nation’s future