Exports and innovation: the role of heterogeneity in exports

Chih-Hai Yang ()
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Chih-Hai Yang: National Central University

Empirical Economics, 2018, vol. 55, issue 3, No 7, 1065-1087

Abstract: Abstract This paper examines whether and how heterogeneity in exports affects firms’ innovations in China. Using comprehensive transaction-level trade data from China Customs to construct various dimensional measures exports, empirical results obtained from a matched firm-transaction panel data find that exports overall have a positive impact on promoting innovations in terms of R&D and new product sales. The innovation-enhancing effect of exports depends on the heterogeneity in exports. Firms with greater varieties of exports, more market diversification, and higher export quality are associated with a higher R&D propensity and more new product sales, while process exports are found a negative association with innovations.

Keywords: Export heterogeneity; Innovation; R&D; Process exports (search for similar items in EconPapers)
JEL-codes: F19 F61 O31 O32 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (9)

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DOI: 10.1007/s00181-017-1312-8

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