Trade policy uncertainty and innovation: Firm level evidence from China's WTO accession

• 成果类型: Article
• 署名作者: Liu, Qing; Ma, Hong
• 署名单位: Renmin University of China; Tsinghua University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2020.103387
• 发表日期: 2020
• 关键词: Trade policy uncertainty; INNOVATION; wto accession

摘要

This study proposes a novel channel through which trade liberalization may induce innovation through the reduction of trade policy uncertainties (TPU) in destination markets. To verify this linkage, we utilize the significant reduction of TPU engendered by China's accession to the World Trade Organization (WTO) in 2001 as a quasi-natural experiment. We find that reduction in TPU significantly encourages firms' patent application: firms in sectors with a larger reduction in uncertainty filed more invention patent applications after China's WTO accession. We also find that firms' innovation responses to TPU reduction vary by productivity, ownership, exporting status, and the irreversibility of investment. (c) 2020 Elsevier B.V. All rights reserved.