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
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