Import Competition and Firm Innovation: Evidence from China
Date
2021-02-25
Authors
Advisors
Journal Title
Journal ISSN
ISSN
0304-3878
Volume Title
Publisher
Elsevier
Type
Article
Peer reviewed
Yes
Abstract
This paper investigates whether and how import competition affects firm innovation. Using China's WTO accession as a quasi-natural experiment, we find that import competition reduces firm innovation, which is consistent with the Schumpeterian effect. We also find heterogeneous treatment effects across firm productivity and patent types. These results are consistent with the preference and knowledge spillover effects, but not with the escape-competition and trapped-factor effects.
Description
The file attached to this record is the author's final peer reviewed version.
Keywords
Import competition, Firm innovation, Schumpeterian effect, Spillover effect, Preference effect, Escape-competition effect, Trapped-factor effect
Citation
Liu, Q., Lu, R., Lu, Y., Luong, T.A. (2021) Import Competition and Firm Innovation: Evidence from China. Journal of Development Economics,