Template-type: ReDif-Paper 1.0
Author-Name: Campbell, Douglas L.
Author-Name: Mau, Karsten
Author-workplace-name: RS: GSBE other - not theme-related research, Macro, International & Labour Economics
Title: On ‘Trade Induced Technical Change: The Impact of Chinese Imports on Innovation, IT and Productivity’
Abstract: Bloom, Draca, and Van Reenen (2016) find that Chinese import competition induced a rise in patenting, IT adoption, and TFP by up to 30% of the total increase in Europe in the late 1990s and early 2000s. We uncover several coding errors in an important robustness check of their patent results. When corrected, we find no statistically significant relationship between Chinese competition and patents. Other specifications in the original paper use a problematic log(1+patents) transformation. This normalization induces bias given low average patent counts for firms in China-competing sectors, and  rapidly declining patents across the sample.
Classification-JEL: f14,f13,l25,l60
Series: GSBE Research Memoranda
Creation-Date: 20200709
Number: 019
File-URL: https://cris.maastrichtuniversity.nl/ws/files/49433016/RM20019.pdf
File-Format: application/pdf
File-Size: 645555
Handle: Repec:unm:umagsb:2020019
DOI: 10.26481/umagsb.2020019