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The quality of imported intermediate inputs and firms’ innovation activities in China

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  • Zhong, Jianjun

Abstract

Using firm-level data in China from 2000 to 2009, this paper studies the connection between the quality of imported intermediate inputs and firms’ innovation activities. Our estimations find that importing high-quality intermediate inputs tends to increase the quantity of firms’ invention patent. The private firms, firms engaged in processing trade, and firms importing from high-income economies benefit more from importing high-quality intermediate inputs. Our results are supported by a series of robustness checks.

Suggested Citation

  • Zhong, Jianjun, 2023. "The quality of imported intermediate inputs and firms’ innovation activities in China," Economics Letters, Elsevier, vol. 222(C).
    • Handle: RePEc:eee:ecolet:v:222:y:2023:i:c:s0165176522003895
    DOI: 10.1016/j.econlet.2022.110915
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    References listed on IDEAS

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    More about this item

    Keywords

    Imported intermediate inputs; Input quality; Innovation; China;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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