|Table of Contents|

Measurement of trade liberalization and its impact on enterprise innovation(PDF)

《长安大学学报（社科版）》[ISSN:1671-6248/CN:61-1391/C]

Issue:
2021年05期
Page:
12-21
Research Field:
国际经济与贸易
Publishing date:
2021-10-10

Info

Title:
Measurement of trade liberalization and its impact on enterprise innovation
Author(s):
YU Miaojie; CAO Jian
(National School of Development & China Center for Economic Research,Peking University, Beijing 100871, China)
Keywords:
trade liberalization;  tariff reduction;  import quota;  penetration rate of import;  enterprise innovation;  productivity;  economy of scale
PACS:
F752; F273.1
DOI:
-
Abstract:
China's firm efforts in expanding its opening-up has greatly promoted global trade liberalization. To analyze the impact of trade liberalization on enterprise innovation, this paper reviews important literature in recent years on trade liberalization and conducts analysis from three dimensions: the measurement of trade liberalization, the theoretical mechanism and empirical results of the impact of trade liberalization on enterprise innovation, and China's entry into the WTO. The results show that import trade liberalization increases enterprise innovation in general, but the impacts on different countries/different enterprises are heterogeneous, Specifically, developing countries mainly profit from importing foreign intermediate products with lower prices and more advanced technology, thus saving production costs and increasing innovative abilities, while enterprises in some developed countries are subject to fierce competition from foreign end products with low prices, resulting in less profits and fewer innovation activities, but technologically advanced enterprises are hardly affected by the competition. Export trade liberalization has a positive impact on the innovation of enterprises in both developing and developed countries. On the one hand, export can lead to economy of scale and increase the returns of innovation. On the other hand, enterprises in developing countries learn advanced technologies from their clients in developed countries by participating in international supply chains, thus improving their own innovative abilities. After China's accession to the WTO, the average tariff level has been reduced drastically, resulting in an increasing level of trade liberalization, which has significantly enhanced the R&D input and productivity levels of domestic enterprises.

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Last Update: 2021-10-10