logo
ResearchBunny Logo
U.S.-China trade conflicts and R&D investment: evidence from the BIS entity lists

Economics

U.S.-China trade conflicts and R&D investment: evidence from the BIS entity lists

H. Hu, S. Yang, et al.

This research investigates how U.S.-China trade conflicts affect R&D investments in Chinese enterprises. Remarkably, export restrictions led to a 16.58% increase in R&D intensity the following year, driven by government subsidies and risk-taking, according to the findings by Han Hu, Shihui Yang, Lin Zeng, and Xuesi Zhang.

00:00
00:00
Playback language: English
Abstract
This paper investigates the impact of U.S.-China trade conflicts on Chinese enterprises' R&D investment. Using data from Chinese publicly listed manufacturing firms and the Bureau of Industry and Security (BIS) entity lists, a difference-in-differences (DID) approach reveals that export restrictions increase R&D investment intensity by 16.58% in the following year. This effect is driven by increased government subsidies, inventory adjustments, and risk-taking. However, the impact on innovation outputs is minimal or negative.
Publisher
HUMANITIES AND SOCIAL SCIENCES COMMUNICATIONS
Published On
Jun 25, 2024
Authors
Han Hu, Shihui Yang, Lin Zeng, Xuesi Zhang
Tags
U.S.-China trade conflicts
R&D investment
Chinese enterprises
export restrictions
government subsidies
innovation outputs
manufacturing firms
Listen, Learn & Level Up
Over 10,000 hours of research content in 25+ fields, available in 12+ languages.
No more digging through PDFs, just hit play and absorb the world's latest research in your language, on your time.
listen to research audio papers with researchbunny