Import competition and firm innovation: Evidence from China

Qing Liu, Ruosi Lu, Yi Lu and Tuan Anh Luong

Journal of Development Economics, 2021, vol. 151, issue C

Abstract: This paper investigates whether and how import competition affects firm innovation. Using China's World Trade Organization (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 in a way consistent with preference and knowledge spillover effects, but not with escape-competition and trapped-factor effects.

Keywords: Import competition; Firm innovation; Schumpeterian effect; Spillover effect; Preference effect; Escape-competition effect; Trapped-factor effect (search for similar items in EconPapers)
JEL-codes: F12 F13 F14 F15 L11 L13 O31 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (36)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304387821000298
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:151:y:2021:i:c:s0304387821000298

DOI: 10.1016/j.jdeveco.2021.102650

Access Statistics for this article

Journal of Development Economics is currently edited by M. R. Rosenzweig

More articles in Journal of Development Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().