Intermediate input imports and innovations: Evidence from Chinese firms' patent filings

Liu, Qing; Qiu, Larry D.

doi:10.1016/j.jinteco.2016.09.009

Cited by 318 publications

(160 citation statements)

References 42 publications

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“…Liu et al (2015) used matched firm-level production data and firm innovation data, and found that a reduction in output tariffs reduces firms' invention innovation and utility model invention but increases firms' design innovation. Using the same matched firm and innovation dataset, Liu and Qiu (2016) found that input tariff reductions has a negative effect on firms' innovation. One possible mechanism underlying the negative effect is that when input tariffs decline, firms can replace their internal innovation with high-quality input imports.…”

Section: Firm Innovationmentioning

confidence: 99%

The Great Opening up and the Roadmap for the Future: The Story of China's International Trade

2018

China and World Economy

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The astonishing surge in China's international trade is the result of comprehensive economic reforms in the 1980s and 1990s. Trade was further bolstered by China's accession to the World Trade Organization (WTO) in 2001. We examine several aspects of China's international trade that might help to explain its surprisingly fast growth and its ever‐growing role in the global economy. A large number of studies have analyzed how trade liberalization, the WTO accession in particular, has profoundly changed the Chinese economy. We survey notable contributions to this literature that analyze the effects of trade liberalization on Chinese firms, individuals and households. Meanwhile, China's exports have had various effects on importing countries and the enormous growth of China's exports is seen by some observers as posing a threat to China's trading partners. Therefore, we discuss the emerging literature on the effects of China's spectacular export growth on consumers, labor markets, innovation, media and politics in foreign countries. Given the new domestic and external circumstances, the Chinese Government is determined to push for the formation of a new trade structure characterized by broad opening up to transform China into a strong trading powerhouse.

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Section: Firm Innovationmentioning

confidence: 99%

The Great Opening up and the Roadmap for the Future: The Story of China's International Trade

2018

China and World Economy

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“…Therefore, we can treat the firms in industries with previously higher input tariff level as the treatment group, and the firms in industries with previously lower input tariff level as the control group, and then compare the change in markups of firms belong to treatment group before and after China's WTO accession to the corresponding change in firms belonging to the control group during the same period. In reality, Guadalupe and Wulf (), Lu and Yu () as well as Liu and Qiu () adopt a similar approach to empirically investigate the impacts of trade liberalisation on corporate hierarchies, markup dispersion and firm innovation, respectively.…”

Section: Empirical Strategy and Datamentioning

confidence: 99%

“…However, considering markup trends in different industries could be different as they may be affected by industry‐specific confounding factors, and if this is the case, the identifying assumption mentioned above would be violated. To examine whether unobserved industry‐specific factors would contaminate our estimates, we follow Liu and Qiu () by adding an industry‐specific linear time trend (i.e.,

α_{i} \cdot t

) as an additional control in our DID specification (7). As shown in column (3) of Table , our coefficients of interest on the interaction term, InpTar 01 × PostWTO 02, remain robust and stable with a similar magnitude, as compared to the baseline specification (column (4) of Table ).…”

Section: Empirical Analysismentioning

confidence: 99%

Input trade liberalisation, institution and markup: Evidence from China's accession to the WTO

Mao

2019

World Economy

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This paper investigates the effects of input trade liberalisation on firm markups and assesses how institutional environment affects such impacts by using Chinese firm‐level data. To identify the causal effects, we exploit the quasi‐natural experiment of China's WTO accession in 2001 and perform difference‐in‐differences estimation. The results show that input tariff liberalisation leads to a substantial increase in firm markups, and institutional environment significantly strengthens such an impact. We further uncover the underlying mechanisms through which input tariff liberalisation boosts firm markups, and show that both price and cost channels work for the input tariff cut effect on firm markups, of which the latter is much more important. In addition, we also demonstrate that input tariff cut significantly fosters aggregate markup growth, and the reallocation effect is found to be an important channel through which input tariff liberalisation boosts aggregate markup growth.

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“…In the robustness checks we use another log-like transformation (Liu and Qiu, 2016). In the robustness checks we use another log-like transformation (Liu and Qiu, 2016).…”

Section: Alternative Dependent Variablesmentioning

confidence: 99%

Cultural Factors and Study Destinations of International Students

Hao

Yuan

Zhao

2019

China and World Economy

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In this paper, we examine the role of cultural factors in attracting international students using data of 102 countries and regions from 2000 to 2015. Our results show that the export of cultural products is conducive to the increase in international students.International students choose to study in developing countries with an official language and religious beliefs that are different from their home country, but tend to choose developed countries with a common language. We also analyze the features of inbound and outbound international students specific to China. Our study indicates that "soft power," such as a unique culture, common values and migration networks, is important for attracting foreign students.

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Intermediate input imports and innovations: Evidence from Chinese firms' patent filings

Cited by 318 publications

References 42 publications

The Great Opening up and the Roadmap for the Future: The Story of China's International Trade

The Great Opening up and the Roadmap for the Future: The Story of China's International Trade

Input trade liberalisation, institution and markup: Evidence from China's accession to the WTO

Cultural Factors and Study Destinations of International Students

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