Does Export Trade Promote Firm Innovation?

Yueling Cai, Gongliang Wu () and Dingsheng Zhang
Additional contact information
Yueling Cai: International Business School, University of International Business and Economics
Gongliang Wu: China Economics and Management Academy, Central University of Finance and Economics

Annals of Economics and Finance, 2020, vol. 21, issue 2, 483-506

Abstract: With globalization, exports as a leading means for firms to operate internationally can not only help firms expand their market and gain economies of scale, but also provide opportunity to gain international experience and technological know-how. Using data of Chinese industrial firms and customs data from 2001 to 2007, this study empirically tests the impact of export trade on innovation. The results show that firms' participation in exports can significantly increase the likelihood of product innovation. Moreover, this study further verifies the impact mechanism and finds that the magnitude of the export learning effect is less than that of the market size effect. This study provides new ideas for China's trade transformation and upgrading, and has policy significance for guiding international operations of firms, maintaining a free international trading system, and stimulating firm exports.

Keywords: Firm export; Export learning effect; Market scale effect; Firm innovation (search for similar items in EconPapers)
JEL-codes: F31 F41 L25 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://down.aefweb.net/AefArticles/aef210208CaiWuZhang.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cuf:journl:y:2020:v:21:i:2:caiwuzhang

Access Statistics for this article

Annals of Economics and Finance is currently edited by Heng-fu Zou

More articles in Annals of Economics and Finance from Society for AEF Contact information at EDIRC.
Bibliographic data for series maintained by Qiang Gao ().