Can Innovation Help US Manufacturing Firms Escape Import Competition from China?

• 成果类型: Article
• 署名作者: Hombert, Johan; Matray, Adrien
• 署名单位: Hautes Etudes Commerciales (HEC) Paris; Centre for Economic Policy Research - UK; Princeton University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12691
• 发表日期: 2018
• 页码: 2003-2039
• 关键词: market; GROWTH

摘要

We study whether R&D-intensive firms are more resilient to trade shocks. We correct for the endogeneity of R&D using tax-induced changes to R&D costs. While rising imports from China lead to slower sales growth and lower profitability, these effects are significantly smaller for firms with a larger stock of R&D (about half when moving from the bottom quartile to the top quartile of R&D). We provide evidence that this effect is explained by R&D allowing firms to increase product differentiation. As a result, while firms in import-competing industries cut capital expenditures and employment, R&D-intensive firms downsize considerably less.