IDEAS home Printed from https://ideas.repec.org/a/taf/reroxx/v37y2024i1p2170901.html
   My bibliography  Save this article

Is technological innovation a push for trade friction?

Author

Listed:
  • Qian Zhao
  • Chi-Wei Su
  • Marilen Gabriel Pirtea
  • Florin Costea

Abstract

This study analyses the interrelation between technological innovation (TI) and trade friction (TF) by applying the bootstrap rolling-window full- and subsample Granger causality test from China in a sample from January 2002 to December 2021. Results show that the influence of TI on TF is twofold. On the one hand, TI is a push for TF. This finding is consistent with the ‘income effect’, which postulates that TI leads to more TF by affecting the income of other countries. On the other hand, TI has a negative influence on TF. This result confirms the ‘substitute effect’, implying that TI can benefit consumers by providing more high-quality and cheaper products. In turn, TF can hinder TI by reducing exporters’ profits. Based on these findings, governments should coordinate their efforts toward innovation and trade policies. At the same time, firms should master core technology and develop their high-performance products to avoid the risk of TF.

Suggested Citation

  • Qian Zhao & Chi-Wei Su & Marilen Gabriel Pirtea & Florin Costea, 2024. "Is technological innovation a push for trade friction?," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 37(1), pages 2170901-217, January.
    • Handle: RePEc:taf:reroxx:v:37:y:2024:i:1:p:2170901
    DOI: 10.1080/1331677X.2023.2170901
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1331677X.2023.2170901
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1331677X.2023.2170901?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:reroxx:v:37:y:2024:i:1:p:2170901. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/rero .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.