The DOI matches its Crossref record; 46 of the 46 references it cites were found in a registry or an index.
Can Innovation Help U.S. Manufacturing Firms Escape Import Competition from China?
Abstract
We study whether R&D‐intensive firms are more resilient to trade shocks. We correct for the endogeneity of R&D using tax‐induced changes to R&D costs. While rising imports from China lead to slower sales growth and lower profitability, these effects are significantly smaller for firms with a larger stock of R&D (about half when moving from the bottom quartile to the top quartile of R&D). We provide evidence that this effect is explained by R&D allowing firms to increase product differentiation. As a result, while firms in import‐competing industries cut capital expenditures and employment, R&D‐intensive firms downsize considerably less.
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Cited by
Anxiety or pain? The impact of tariffs and uncertainty on Chinese firms in the trade war
Benguria, F., Choi, J., Swenson, D. L., & Xu, M. (. (2022) · Journal of International Economics · doi:10.1016/j.jinteco.2022.103608 · Cited by 282
Metadata
- Authors
- HOMBERT, J., & MATRAY, A.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 2018-07-12
- Volume
- 73
- Issue
- 5
- Pages
- 2003-2039
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W2807395762
- Cited by
- 293
- References
- 46
- FWCI
- 47.68
- Type
- journal article
- Language
- en
- Open access
- closed
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