On ‘Trade Induced Technical Change: The Impact of Chinese Imports on Innovation, IT and Productivity’

Douglas Campbell and Karsten Mau

No 19, Research Memorandum from Maastricht University, Graduate School of Business and Economics (GSBE)

Abstract: Bloom, Draca, and Van Reenen (2016) find that Chinese import competition induced a rise in patenting, IT adoption, and TFP by up to 30% of the total increase in Europe in the late 1990s and early 2000s. We uncover several coding errors in an important robustness check of their patent results. When corrected, we find no statistically significant relationship between Chinese competition and patents. Other specifications in the original paper use a problematic log(1+patents) transformation. This normalization induces bias given low average patent counts for firms in China-competing sectors, and rapidly declining patents across the sample.

JEL-codes: F13 F14 L25 L60 (search for similar items in EconPapers)
Date: 2020-07-09
New Economics Papers: this item is included in nep-com, nep-eff, nep-ino and nep-int
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Citations: View citations in EconPapers (5)

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Related works:
Journal Article: On “Trade Induced Technical Change: The Impact of Chinese Imports on Innovation, IT, and Productivity” (2021)
Working Paper: On "Trade Induced Technical Change: The Impact of Chinese Imports on Innovation, IT and Productivity" (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:unm:umagsb:2020019

DOI: 10.26481/umagsb.2020019

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