International Trade and R&D Investment: Evidence from Chinese Manufacturing Firms
MetadataShow full item record
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.
Showing items related by title, author, creator and subject.
Xu, Yan (2009)Current research on corporate cash holdings is set within the contemporary corporate cash-holding conceptual framework established by Opler et al. (1999), which consist of the static trade-off theory, the pecking-order ...
Liu, Li Xian (2012)Chinese firms that cross-list in China A-share, Hong Kong and New York markets operate in a complexenvironment. Theoretically, when one firm is trading on multiple exchanges, the shares across exchanges are expected to ...
Luo, Yadong; Zheng, Q. (2016)© Emerald Group Publishing Limited. Purpose - The purpose this paper is to comment on the "Global Implications of the Indigenous Epistemological System from the East: How to Apply Yin-Yang Balancing to Paradox Management" ...