Journal article
Export controls and innovation performance: Unravelling the complex relationship between blacklisted Chinese firms and US suppliers
The World Economy, Vol.47(7), pp.2995-3033
2024
Abstract
Export controls are crucial for protecting domestic economic interests globally. However, there is a lack of consensus regarding their impact on innovation performance. This study contributes to the literature by examining the effects of the U.S. entity list on the innovation performance of blacklisted Chinese firms and related industries, as well as the reverse shock on U.S. suppliers. Using propensity score matching and a difference-in-differences approach, we found that export controls stimulate technological innovation in blacklisted firms and generate industry-wide spillover effects in the sanctioned country. Particularly, firms heavily reliant on imports from the United States and those solely dependent on China's domestic market experience significant effects. However, export controls have a negative impact on the innovation performance of U.S. suppliers. We examine the mechanisms driving these effects, including government grants, R&D investment and firm performance. Our work offers valuable insights into the complex relationship between export controls and innovation performance, highlighting the differentiated impacts on blacklisted firms, related industries and U.S. suppliers.
Details
- Title
- Export controls and innovation performance: Unravelling the complex relationship between blacklisted Chinese firms and US suppliers
- Authors
- Sajid Anwar (Author) - University of the Sunshine Coast, Queensland, School of Business and Creative IndustriesBeibei Hu (Corresponding Author) - Shanghai University of International Business and EconomicsQiao Luan (Author) - Shanghai University of Finance and EconomicsKai Wang (Corresponding Author) - Shanghai University of Finance and Economics
- Publication details
- The World Economy, Vol.47(7), pp.2995-3033
- Publisher
- Wiley-Blackwell Publishing Ltd.
- Date published
- 2024
- DOI
- 10.1111/twec.13570
- ISSN
- 1467-9701
- Data Availability
- The data that support the findings of this study are available from China Stock Market & Accounting Research Database (CSMAR). Restrictions apply to the availability of these data, which were used under license for this study. Data are available from the authors with the permission of CSMAR.
- Organisation Unit
- Indigenous and Transcultural Research Centre; School of Business and Creative Industries
- Language
- English
- Record Identifier
- 991010979902621
- Output Type
- Journal article
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- Domestic collaboration
- International collaboration
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- Business, Finance
- Economics
- International Relations
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