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Intermediate import, independent innovation and export sophistication of Chinese manufacturing enterprises

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  • Song, Yuegang
  • Hao, Xiazhen
  • Zheng, Lei

Abstract

This paper contains a regression analysis of a database that merges the data of the Chinese Customs Database with the Chinese Industrial Enterprise Database. Empirical testing verifies, from the perspective of independent innovation, the impact of intermediate imports on export sophistication. The findings include three parts. First, intermediate imports contribute significantly and positively to manufacturing independent innovation, although the promotive role differs significantly with enterprise ownership, trade type, country of export destination and technological strengths. Second, although independent innovation has a direct promotive impact on export sophistication, it restrains the positive promotive role of intermediate imports on export sophistication, i.e., there is a negative moderation effect. Third, intermediate imports has a stronger promotive impact on enterprises at the nascence and growth stages, while independent innovation has a stronger promotive impact on enterprises at the growth and maturity stages.

Suggested Citation

  • Song, Yuegang & Hao, Xiazhen & Zheng, Lei, 2022. "Intermediate import, independent innovation and export sophistication of Chinese manufacturing enterprises," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 126-140.
    • Handle: RePEc:eee:streco:v:60:y:2022:i:c:p:126-140
    DOI: 10.1016/j.strueco.2021.11.012
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    Cited by:

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    2. Naima Mubeen & Dr. Muhammad Abdul Quddus, 2023. "Trade Horizons: A Comprehensive Study of Determinants Shaping Export Diversification in Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 446-458.
    3. Jiazhen Ren & Apurbo Sarkar & Hong Li & Xiaojing Li, 2022. "Does the Host Country’s Foreign Direct Investment (FDI) Restrictiveness Inhibit the Export Sophistication of the Home Country? Evidence from China’s Manufacturing Data," Sustainability, MDPI, vol. 14(22), pages 1-20, November.
    4. Muhammad Usman Arshad & Muhammad Nadir Shabbir & Momna Niazi, 2023. "Trade Openness and Public Innovation: A Causality Analysis," SAGE Open, , vol. 13(3), pages 21582440231, September.
    5. Michele Imbruno, & Rosanna Pittiglio, & Filippo Reganati,, 2024. "How do foreign-owned suppliers affect economic performance? Evidence from Italian manufacturing firms," International Economics, Elsevier, vol. 178(C).
    6. Ke Huang & Teng Wang & Jiachao Peng & Lijun Sun, 2023. "The Impact of Export Sophistication of the New Energy Industry on Carbon Emissions: An Empirical Study," Energies, MDPI, vol. 16(9), pages 1-15, April.
    7. Weihao Zhang & Helian Xu & Yuanyuan Xu, 2023. "Does Stronger Environmental Regulation Promote Firms’ Export Sophistication? A Quasi-Natural Experiment Based on Sewage Charges Standard Reform in China," Sustainability, MDPI, vol. 15(11), pages 1-17, June.
    8. Mohammed Shakib, 2023. "Innovation-Export Diversification Nexus in Russian Regions: Does Trade Globalization, Business Potential and Geopolitics Matter?," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 22(4), pages 932-974.

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    More about this item

    Keywords

    Export sophistication; Intermediate imports; Independent innovation; Life cycle;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F19 - International Economics - - Trade - - - Other

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