ID | 144853 |
Title Proper | International trade and r&d investment |
Other Title Information | evidence from Chinese manufacturing firms |
Language | ENG |
Author | Song, Ligang ; Zhou, Yixiao |
Summary / Abstract (Note) | A current concern for China's long-term growth prospect is whether China can become an innovative economy and achieve industrial upgrading to compensate for the gradually declining competitiveness resulting from low-cost labor. The present study examines this issue by exploring how trade participation impacts on the R&D investment of manufacturing firms through various channels. Merging China's Annual Manufacturing Survey Dataset and the Chinese Customs Dataset allows us to study such a relationship at the individual firm level. The empirical results suggest that channels such as geographical diversification of export markets, share of imports from high-income countries, average unit value of imports, number of intermediate goods and capital goods imports, and the trade regime are significant factors that influence firm-level R&D investment. The study discusses the policy implications of the empirical findings in relation to industrial and trade policies that may be potentially beneficial for China's transition towards an innovative economy. |
`In' analytical Note | China and World Economy Vol. 24, No.1; Jan-Feb 2016: p.63–84 |
Journal Source | China and World Economy 2016-02 24, 1 |
Key Words | Trade ; Chinese Economy ; R&D Investment ; Firm Behavior |