Fu, Dahai and Wu, Yanrui and Tang, Yihong (2010): Does innovation matter for Chinese hightech exports? a firm-level analysis.
Download (408kB) | Preview
This paper analyzes the role of innovation activities in the export participation of Chinese high-tech firms during the period of 2005-2007. Using a parametric, instrumental variable approach and a non-parametric matching method, we find that firm-level innovation efforts, measured by R&D and product innovation dummies, play only a minor role for domestic exporters. Foreign-invested firms dominate the high-tech exports but do not rely on indigenous innovation activities. These results thus confirm prior findings that the success of Chinese high-tech exports does not result from heavy R&D expenditure and technological progress. Moreover, different types of innovation measures show different impacts on the likelihood of exporting. The impacts of innovation on exporting vary widely across industries and provinces.
|Item Type:||MPRA Paper|
|Original Title:||Does innovation matter for Chinese hightech exports? a firm-level analysis|
|Keywords:||Exporting, Innovation, R&D, High technology, China|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O53 - Asia including Middle East
F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade
O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O32 - Management of Technological Innovation and R&D
|Depositing User:||Dahai Fu|
|Date Deposited:||08 Apr 2011 02:09|
|Last Modified:||12 Dec 2016 00:18|
Abadie A., Drukker D., Herr J. L. and Imbens G. W. (2004), 'Implementing Matching Estimators for Average Treatment Effects in Stata', The Stata Journal, 4, 290-311.
Abadie A. and Imbens G. W. (2006), 'Large Sample Properties of Matching Estimators for Average Treatment Effects', Econometrica, 74, 235-67.
Athukorala P. (2009), 'The Rise of China and East Asian Export Performance: Is the Crowding-Out Fear Warranted?', The World Economy, 32, 2, 234-66.
Aw B. Y., Roberts M. J. and Winston T. (2007), 'Export Market Participation, Investments in R&D and Worker Training, and the Evolution of Firm Productivity', The World Economy, 30, 1, 83-104.
Aw B. Y., Roberts M. J. and Xu D. Y. (2009), 'R&D Investment, Exporting, and Productivity Dyanmics', NBER Working Paper Series No.14670.
Baum C. F. and Schaffer M. E. (2003), 'Instrumental Variables and GMM: Estimation and Testing', THe Stata Journal, 3, 1-31.
Becker S. O. and Egger P. H. (2009), 'Endogenous product versus process innovation and a firm’s propensity to export ', Empirical Economics (forthcoming).
Bernard A. B. and Jensen J. B. (1999), 'Exceptional exporter performance: cause, effect, or both?', Journal of International Economics, 47, 1, 1-25.
Cai H. and Liu Q. (2009), 'Competition and Corporate Tax Avoidance: Evidence from Chinese Industrial Firms', Economic Journal, 119, 764-95.
Caldera A. (2010), 'Innovation and Exporting: Evidence from Spanish Manufacturing Firms', Review of World Economics, 146, 4, 657-89.
Cameron A. C. and Trivedi P. K. (2009), Microeconometrics Using Stata, (Stata Press).
Caostantini J. A. and Melitz M. (2007), 'The Dynamics of Firm-Level Adjustment to Trade Liberalization', mimeo, Princeton University).
Cassiman B. and Martínez-Ros E. (2007), 'Product Innovation and Exports: Evidence from Spanish Manufacturing', IESE working paper, mimeo.
Cole M. A., Elliott R. J. R. and Virakul S. (2010), 'Firm Heterogeneity, Origin of Ownership and Export Participation', The World Economy, 33, 2, 264-91.
Damijan J. P., Kostevc C. and Polanec S. (2010), 'From Innovation to Exporting or Vice Versa? ', The World Economy, 33, 3, 374-98.
Girma S., Görg H. and Hanley A. (2008), 'R&D and Exporting: A Comparision of British and Irish Firms', Review of World Economics, 144, 4, 750-73.
Harris R. and Li Q. C. (2009), 'Exporting, R&D, and Absorptive Capacity in UK Establishments', Oxford Economic Papers, 61, 74-103.
Huang C., Zhang M., Zhao Y. and Varum C. A. (2008), 'Determinants of Exports in China: A Microeconometric Analysis', The European Journal of Development Research, 20, 2, 299-317.
Jefferson G., Hu A. G., Guan X. and Yu X. (2003), 'Ownership, Performance, and Innovation in China's Large- and Medium-Size Industrial Enterprise Sector', China Economic Review, 14, 1, 89-113.
Jefferson G. H., Rawski T. G. and Zhang Y. (2008), 'Productivity Growth and Convergence Across China's Industrial Economy', Journal of Chinese Economic and Business Studies, 6, 2, 121-40.
Lachenmaier S. and Wößmann L. (2006), 'Does Innovation Cause Exports? Evidence from Exgenous Innovation Impulses and Obstacles Using German Micro Data', Oxford Economic Papers, 58, 317-350.
Lall S. (2000), 'The Technological Structure and Performance of Developing Country Manufactured Exports, 1985-98', Oxford Development Studies, 28, 3, 337-69.
Lee H.-H. and Stone J. A. (1994), 'Product and Process Innovation in the Product Life Cycles: Estimates for U.S. Manufacturing Industries', Southern Economic Journal, 60, 3, 754-63.
Levinsohn J. and Petrin A. (2003), 'Estimating Production Functions Using Inputs to Control for Unobservables', Review of Economic Studies, 70, 317-42.
Mani S. (2000), 'Exports of High Technology Products from Developing Countries: Is It a Real or Statistical Artifact?', Discussion Paper No. 2000-1, (United Nations University, Institute for New Technologies, Maastricht.
Mayer J., Butkevicius A. and Kadri A. (2002), 'Dynamic Products in World Exports', Discussion Papers No. 159. , (UNCTAD, Geneva).
Melitz M. J. (2003), 'The Impact of Trade on Intra-Industry Reallocation and Aggregate Industry Productivity', Econometrica, 71, 1695-725.
NBSC (2009), China Statistical Abstract 2009, (China Statistics Press, Beijing).
Nguyen A. N., Pham N. Q., Nguyen C. D. and Nguyen N. D. (2008), 'Innovation and Exports in Vietnam's SME Sector', The European Journal of Development Research, 20, 2, 262-80.
Norton E. C., Wang H. and Ai C. (2004), 'Computing Interaction Effects and Standard Errors in Logit and Probit Models', THe Stata Journal, 20, 2, 262-80.
OECD (2009), 'Measuring China's Innovation System: national Specificities and International Comparisons', STI Working Paper 2009/1, (Statistical Analysis of Science, Technology and Industry, OECD, Paris.
Roberts M. J. and Tybout J. R. (1997), 'The Decision to Export in Colombia: An Empirical Model of Entry with Sunk Costs', The American Economic Review, 87, 4, 545-64.
Srholec M. (2007), 'High-Tech Exports from Developing Countries: A Symptom of Technology Spurts or Statistical Illusion?', Review of World Economics, 143, 2, 227-55.
Van Beveren I. and Vandenbussche H. (2010), 'Product and Process Innovation and the Decision to Export: Firm-level Evidence for Belgium', Journal of Economic Policy Reform, 13, 1, 3-24.
Wagner J. (2007), 'Exports and Productivity: A Survey of the Evidence from Firm-level Data', The World Economy, 30, 1, 60-82.
Wakelin K. (1998), 'Innovation and Export Behaviour at the Firm Level', Research Policy, 26, 829-41.
World Bank (2008), 'The World Development Indicators 2008', (New York, USA).
World Bank (2009), 'The World Development Indicators 2009', (New York, USA).
Zhao H. and Li H. (1997), 'R&D and Export: An Empirical Analysis of Chinese Manufacturing Firms', The Journal of High Technology Management Research, 8, 1, 89-105.