Import Competition and Firm Innovation: Evidence from China

Date

2021

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,

Rights

Research Institute

Institute for Applied Economics and Social Value (IAESV)