Trade and innovation policies: Coexistence and spillovers

Auboin, Marc; Koopman, Robert; Xu, Ankai

doi:10.1016/j.jpolmod.2021.02.010

Cited by 18 publications

(10 citation statements)

References 48 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This extension and greater global governance create jobs and improve skill/technical workers in developing countries due to the technology push growth (Romer, 1990); thus, this not only resolves face-to-face cost but also disentangle agglomeration of GVC participation. Lastly, the supply chain 30 WTO provide framework of rules that eliminates distortion of negative spillover effects (see Auboin at al., 2021 for more details). 31 For example, de Gortari ( 2019) presented the roundabout model regarding the U.S.-Mexico trade relation because of NAFTA.…”

Section: Policy Discussion and Suggestionsmentioning

confidence: 99%

“…17 transmitted through (i) international trade in final, intermediate, and capital goods, (ii) FDI, (iii) migration of educated (i.e. scientists and engineers) people, (iv) publications in technical journals and scientific papers, (v) international mergers and acquisitions, and (vi) foreign technology payments such as consulting services and the financing of R&D (Auboin at al., 2021;Hall et al, 2010). 18 As Melitz's model ( 2003) indicates, firms with higher-than-average productivity (cutoff of survival) are likely to export (participating in GVC).…”

Section: Technological Spillover In Gvc Participationmentioning

confidence: 99%

“…However, there are in need (right) institutions and policies to underpin innovation and necessary accumulation of capital as a growth frontier.28 As documented in the literature, policies of the diversification of suppliers, consumers, and delivery channels, as well as flexibility, stockpiling, inventory, and buffer stocks (seeMiroudot (2020) for more information) are some possible solutions for dynamic recovery from any (national/international) shocks. Otherwise, domestic shocks such as Tohoku (Biyik 2022b) will result in higher GDP costs.29 One is to reduce reciprocal tariff barriers and improve trade facilitation (i.e., support measures, data governance, cross border investment, and trade in services, seeAuboin at al. (2021)) for all nations (no distortion) under the WTO, which promote trade flows/FDI(ADB & ESCAP, 2013;Hillberry & Zhang, 2018) and thus enhance firm profit/productivity(Pavcnik, 2002) for all nations.…”

mentioning

confidence: 99%

See 2 more Smart Citations

Double Counting in Mystery: Journey of Intermediate Products in Multi-Country Trade

Biyik

2022

Preprint

View full text Add to dashboard Cite

This study analyzes the production concept of the Value-Added (VA) chain by applying an alternative framework, as this concept is the main driver of the VA embodied in the intermediate export. VA supply chain spillover (upstream and downstream) of the production activities is investigated. The focal point of this study is to extend Global Value Chains (GVC) based on the multilevel and bilateral trade flow. In brief, there are two main contributions of this paper; the first begins with the originality of this work’s theory which reveals the intermediate input journey among sector-country pairs, and the second is to introduce the optimal GVC participation with the knowledge spillover effect regarding vertical (upstream and downstream) integration. In other words, this paper found that different forms of the VA with traveled products (among countries) provide more precise (sectoral/regional) integration and optimal estimation method. This paper relies on constructed Global Trade Analysis Project Multi-Region Input-Output (GTAP-MRIO) and patent panel datasets. As a result of the analysis, if the product crosses the border only twice as the product returns home to its origin country, the export/import coefficient of the sectoral linkages, which boosts VA and then causes double-counting, is about 1.54 % in terms of (single) country-level data. More importantly, with regard to its contributions with the knowledge spillover effect, traveling products among countries as twice or infinity is to contribute by 1.6% or 154%. Lastly, its contribution to VA presents 0.8% to 72%.

show abstract

Section: Policy Discussion and Suggestionsmentioning

confidence: 99%

Section: Technological Spillover In Gvc Participationmentioning

confidence: 99%

mentioning

confidence: 99%

See 1 more Smart Citation

Double Counting in Mystery: Journey of Intermediate Products in Multi-Country Trade

Biyik

2022

Preprint

View full text Add to dashboard Cite

show abstract

“…It goes beyond the traditional analysis of foreign direct investment's influence on exports to include the transformative role of e-commerce. This methodological advancement builds upon and extends the analyses of Götz (2020), Auboin et al (2021), andHa (2022), who, despite their thoroughness, did not fully address the synergistic relationship between foreign direct investment and digital trade channels. Aligned with the analytical frameworks of Agarwal and Wu (2015), He et al (2021), andShanmugalingam et al (2023), this study emphasizes a thorough understanding of trade dynamics in the digital era.…”

Section: Literature Reviewmentioning

confidence: 99%

E-commerce and foreign direct investment: pioneering a new era of trade strategies

2024

Humanit Soc Sci Commun

View full text Add to dashboard Cite

This study explores the dynamic interplay between foreign direct investment, e-commerce, and China’s export growth from 2005 to 2022 against the backdrop of the rapidly evolving global economy. Utilizing advanced analytical models that combine province- and year-fixed effects with fully modified ordinary least squares and dynamic ordinary least-squares methodologies, we delve into how foreign direct investment and e-commerce collectively boost China’s export capabilities. Our findings highlight a significant alignment between China’s export expansion and the global sustainable development agenda. We observe that China’s export growth transcends mere international investment and digital market engagement, incorporating sustainable practices such as effective utilization of local labor resources and an emphasis on technological advancements. This study also uncovers how knowledge capital and educational attainment positively impact export figures. A notable regional disparity is observed, with the eastern regions of China being more responsive to foreign direct investment and e-commerce influences on export trade compared to their western counterparts. This disparity underscores the need for region-specific policy approaches and sustainable strategies to evenly distribute the benefits of foreign direct investment and e-commerce. The study concludes that while foreign direct investment and e-commerce are crucial for China’s export growth, the underlying theme is sustainable development, with technological innovation and human capital being key to ongoing export success. The findings advocate for policies that balance economic drivers with sustainable development goals, ensuring both economic prosperity and environmental sustainability.

show abstract

“… 3 See Heylen and Van de Kerckhove (2019) for an analysis about policies fostering the employment older individuals and Auboin, Koopman, and Xu (2021) for government intervention in innovation activities with a specific focus on the effects of the digital economy. …”

mentioning

confidence: 99%