Policy certainty and heterogeneous firm innovation: Evidence from China

Jiang, Xiandeng; Kong, Dongming; Xiao, Chengrui

doi:10.1016/j.chieco.2020.101500

Cited by 26 publications

(12 citation statements)

References 62 publications

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“…Figure 1 shows that most of this trade boom occurred after China's accession to the World Trade Organization (WTO), which has led some authors to argue that the accession may have reduced trade costs faced by Chinese exporters. 1 But US-applied trade barriers toward China remained largely unchanged at that time.…”

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confidence: 99%

“…We obtain structural estimates of key policy uncertainty parameters and use them to quantify the implications for aggregate prices, the welfare of US consumers, and other outcomes. We focus on the role of TPU for investment and prices in part because of their importance in 1 Autor, Dorn, and Hanson (2013) make this point and also cite other motives for this export growth. China's income has risen, driven by internal reforms (many in the 1990s) with a subset targeted to exports (Hsieh and Klenow 2009; Blonigen and Ma 2010).…”

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confidence: 99%

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Policy Uncertainty, Trade, and Welfare: Theory and Evidence for China and the United States

Handley

Limão

2018

World Scientific Studies in International Economics

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We examine the impact of policy uncertainty on trade, prices, and real income through firm entry investments in general equilibrium. We estimate and quantify the impact of trade policy on China's export boom to the United States following its 2001 WTO accession. We find the accession reduced the US threat of a trade war, which can account for over one-third of that export growth in the period 2000-2005. Reduced policy uncertainty lowered US prices and increased its consumers' income by the equivalent of a 13-percentage-point permanent tariff decrease. These findings provide evidence of large effects of policy uncertainty on economic activity and the importance of agreements for reducing it.

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confidence: 99%

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confidence: 99%

Policy Uncertainty, Trade, and Welfare: Theory and Evidence for China and the United States

Handley

Limão

2018

World Scientific Studies in International Economics

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“…Diwekar et al, 2021;Ozili, 2021). A higher level of policy uncertainty is likely to diminish confidence in future business investment and new technology adoption (Jiang et al, 2020;Diwekar et al, 2021).…”

Section: Literature Review: Sustainability Under Uncertainty and Netz...mentioning

confidence: 99%

Greening aviation in era of COVID-19: Towards conceptualizing and operationalizing decarbonization

Amankwah‐Amoah

Debrah

Anang

2023

Journal of Environmental Management

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“…That is, compared with non-election years, the company increased R&D investment by 4.6% on average in election years. However, Jiang et al ( 2020 ) find that the more stable the local policy environment, the more stable the innovation subsidies for enterprises, which promote the number of patent applications by enterprises. Conversely, if the policy environment is unstable, the innovation subsidies of enterprises will be affected, which is not conducive to the innovation of enterprises.…”

Section: Theoretical Mechanism and Hypothesis Developmentmentioning

confidence: 99%

The impact of economic policy uncertainty on PM2.5 pollution—evidence from 25 countries

Xin

2022

Environ Sci Pollut Res

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We conduct theoretical and empirical study on the impact of economic policy uncertainty on PM2.5 pollution. Economic policy uncertainty has important impact on PM2.5 pollution through investment channel and innovation channel. Specifically, according to real option theory, increase in economic policy uncertainty can reduce investment, thereby reducing PM2.5 pollution. However, increase in economic policy uncertainty can hinder corporate’s innovation activities, which in turn make PM2.5 pollution increase. Therefore, the impact of economic policy uncertainty on PM2.5 pollution depends on the combination effect of these two different effects. Furthermore, using 25 countries’ unbalanced panel data and fixed effects estimation methods, we empirically test the impact of economic policy uncertainty on PM2.5 pollution. The results show that, with the increase of economic policy uncertainty, countries’ PM2.5 pollution has significantly decreased. In addition, economic policy uncertainty has heterogeneous effect on countries’ PM2.5 pollution. Compared with countries who have higher R&D input, increase in economic policy uncertainty makes the reduction of PM2.5 pollution in countries with relatively lower R&D input higher. By changing the measurement methods of economic policy uncertainty and PM2.5 pollution indicators, and using 2SLS methods to estimate the models, the conclusions of the paper are robust. Finally, we put forward corresponding policy implications.

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Policy certainty and heterogeneous firm innovation: Evidence from China

Cited by 26 publications

References 62 publications

Policy Uncertainty, Trade, and Welfare: Theory and Evidence for China and the United States

Policy Uncertainty, Trade, and Welfare: Theory and Evidence for China and the United States

Greening aviation in era of COVID-19: Towards conceptualizing and operationalizing decarbonization

The impact of economic policy uncertainty on PM2.5 pollution—evidence from 25 countries

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