• search hit 2 of 3
Back to Result List

Innovation responses to import competition

  • How does trade liberalization that raises a country’s import competition affect the innovative activity of its firms? We exploit the strong growth of Chinese exports resulting from China’s entry into the World Trade Organization in 2001 as a competitive shock to, specifically, Mexican manufacturing firms. Innovation is captured through information on the adoption of detailed firm level production techniques such as just in time inventory methods, quality control measures, and job rotation among the Mexican firms. Our results indicate that China’s rise in global trade did not affect by much Mexico’s rate of innovation, which contrasts with the substantial gains that others have found in the case of bilateral iberalizations. At the same time, there is a striking heterogeneity in the responses across firms for different productivities, with productive firms innovating more and less productive firms innovating less, which leads to positive selection in that initial differences in firm performance are sharpened by the advent of new competition. We discuss the implications of these findings for theories of trade and innovation.

Export metadata

Additional Services

Share in Twitter Search Google Scholar
Metadaten
Document Type:Working Paper
Language:German
Author(s):Leonardo Iacovone, Wolfgang Keller, Ferdinand Rauch
Publication year:2011
Publishing Institution:Hertie School
Related URL:https://pdfs.semanticscholar.org/55d4/4ed62dbefe54fd318ce1b4035d9dbff45ddc.pdf
Release Date:2019/05/16
Licence of document (German):Metadaten / metadata
Verstanden ✔
Diese Webseite verwendet technisch erforderliche Session-Cookies. Durch die weitere Nutzung der Webseite stimmen Sie diesem zu. Unsere Datenschutzerklärung finden Sie hier.