NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

The Impact of Trade Liberalization on Firm Productivity and Innovation

Pian Shu, Claudia Steinwender

Chapter in NBER book Innovation Policy and the Economy, Volume 19 (2019), Josh Lerner and Scott Stern, editors (p. 39 - 68)
Conference held April 17, 2018
Published in November 2018 by University of Chicago Press
© 2019 by the National Bureau of Economic Research
in NBER Book Series Innovation Policy and the Economy

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.

This chapter is no longer available for free download, since the book has been published. To obtain a copy, you must buy the book.
Order from Amazon.com

You may be able to access the full text of this document via the Document Object Identifier.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): https://doi.org/10.1086/699932

This chapter first appeared as NBER working paper w24715, The Impact of Trade Liberalization on Firm Productivity and Innovation, Pian Shu, Claudia Steinwender
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us