Does Trade Stimulate Innovation? : Evidence from Firm-Product Data

Ana Margarida Fernandesi ; Caroline Paunovii iThe World BankiiOECD

Organisation for Economic Co-operation and Development

关键词: Chile;    transport costs;    product quality;    import competition;    firm level data;    multi-product firms;    incremental innovation;    output;    unit values;   

DOI  :  https://doi.org/10.1787/5kmmp8g92x34-en

学科分类：社会科学、人文和艺术（综合）

来源: OECD iLibrary

【 摘 要 】

This paper investigates whether increased import competition leads firms to engage in incremental innovation reflected in product quality upgrading. The econometric analysis relies on a rich dataset of Chilean manufacturing firms and their products. Product quality is measured with unit values (prices) and imports’ transport costs are used as an exogenous proxy for import competition. The estimates show a negative effect of transport costs on product quality. The paper provides explicit evidence that estimated increases in unit values capture product quality upgrading, and that competition effects of imports explain our results. Easier access to intermediate inputs also fosters quality upgrading.