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The Impact of Trade Liberalization on Firm Productivity and Innovation

Pian Shu & Claudia Steinwender

Innovation Policy and the Economy2018https://doi.org/10.1086/699932article
ABDC B
Weight
0.75

Abstract

This chapter reviews the empirical economics literature on the impact of trade liberalization on firms’ innovation-related outcomes. We define and examine four types of shocks to trade flows: import competition, export opportunities, access to imported intermediates, and foreign input competition. Our review reveals interesting heterogeneities at the country and firm levels. In emerging countries, trade liberalization appears to spur productivity and innovation. In developed countries, export opportunities and access to imported intermediates tend to encourage innovation, but the evidence on import competition is mixed, especially for firms in the United States. At the firm level, the positive effects of trade on innovation are more pronounced at the initially more productive firms, while the negative effects are more pronounced at the initially less productive firms.

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https://doi.org/https://doi.org/10.1086/699932

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@article{pian2018,
  title        = {{The Impact of Trade Liberalization on Firm Productivity and Innovation}},
  author       = {Pian Shu & Claudia Steinwender},
  journal      = {Innovation Policy and the Economy},
  year         = {2018},
  doi          = {https://doi.org/https://doi.org/10.1086/699932},
}

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The Impact of Trade Liberalization on Firm Productivity and Innovation

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Evidence weight

0.75

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact1.00 × 0.4 = 0.40
M · momentum0.80 × 0.15 = 0.12
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.