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Bidirectional technological spillover in the Chinese star-rated hotel sector: An empirical investigation

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  • Walheer, Barnabé
  • Zhang, Linjia
  • Luo, Yingchan
Abstract
The star-rated hotel sector has played an increasing role in Chinese economic development. A feature of this sector is the technology-gap between high- and low-end hotels, which may generate spillover through different channels: such as human capital mobility and management systems. High-end hotels are technological leaders with better access to technology, foreign connections, and government policy support, while low-end hotels have better localized knowledge and expertise. Therefore, it is important to see whether there is spillover between high- and low-end hotels. Two contributions of our paper are to model hotels as multi-service decision-makers, and to rely on a nonparametric empirical strategy. The results show that high-end hotels are the major spillover generators moving the star-rated hotel sector to better performance. On the other hand, low-end hotels not only integrate the technological knowledge from high-end hotels, but also share their experience of local knowledge.

Suggested Citation

  • Walheer, Barnabé & Zhang, Linjia & Luo, Yingchan, 2020. "Bidirectional technological spillover in the Chinese star-rated hotel sector: An empirical investigation," Economic Modelling, Elsevier, vol. 86(C), pages 210-226.
    • Handle: RePEc:eee:ecmode:v:86:y:2020:i:c:p:210-226
    DOI: 10.1016/j.econmod.2019.06.013
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    More about this item

    Keywords

    Star-rated hotels; China; Efficiency; Technology gap; Spillovers; Meta-technology;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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