Exports and New Products in China – A Generalised Propensity Score Approach with Firm-to-Firm Spillovers

Yundan Gong and Aoife Hanley

Journal of Development Studies, 2021, vol. 57, issue 12, 2136-2155

Abstract: Underpinning China’s technological advancement are the twin-engines of exports and innovation. To better understand China’s meteoric economic transformation, we explore the extent to which new products are triggered by exports (direct effects) and by exposure to other exporters (indirect effects). Our methodology (generalised propensity score model) tackles two sources of selectivity bias – at the level of the firm and neighbourhood. Given that production is highly specialised and localised, it would be unusual if firms failed to learn from exposure to local exporters.Our findings reveal an overwhelmingly positive direct effect of exports on new product introductions. Also, a more modest spillover effect. Interestingly, firms with a reduced need to innovate (processing exporters) can also appropriate export spillovers. Our findings have implications for other developing countries seeking to maximise exporting in economic clusters, promoting innovation and ultimately growth.

Date: 2021
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/00220388.2021.1956470 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Exports and new products in China - A generalized propensity score approach with firm-to-firm spillovers (2021)
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:taf:jdevst:v:57:y:2021:i:12:p:2136-2155

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/FJDS20

DOI: 10.1080/00220388.2021.1956470

Access Statistics for this article

Journal of Development Studies is currently edited by Howard White, Oliver Morrissey and Ken Shadlen

More articles in Journal of Development Studies from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().