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Article
Publication date: 15 January 2019

Kui Wang and Wang Tao

The purpose of this study is to advance and test the idea that product exports and technology imports are complementary cross-border learning approaches for emerging market firms’…

Abstract

Purpose

The purpose of this study is to advance and test the idea that product exports and technology imports are complementary cross-border learning approaches for emerging market firms’ innovation performance. In addition, this paper also seeks to search for contextual variables that affect this complementarity.

Design/methodology/approach

This study takes systems approach to examine complementarity, combining a “productivity” and an “adoption” approach. In addition, interaction approach is also used as robustness check.

Findings

The authors show that the positive effect of export activity on firms’ growth rate is higher for firms that also engage in technology import, and vice versa. Furthermore, they show that, Ceteris paribus, firms’ adoption of one cross-border learning mechanism (e.g. entering export markets) positively influences the adoption of the other (e.g. technology import). Moreover, this complementarity is only significant for firms from province with low level of marketization.

Research limitations/implications

This inconsistency about learning-by-exporting and technology import on innovation can be resolved, at least partially, by the complementarities perspective. This paper also reveals two mechanisms of learning-by-exporting: the indirect effect of export on innovation through increasing the likelihood of adoption decision of importing technology and enhancing the positive effect of technology imports.

Practical implications

The potential of combining the two strategies should not be ignored by managers. To improve regional competitiveness, local governments should try best to improve the efficiency of customs to help firms realize the synergistic effect of learning-by- exporting and learning-by-technology-importing.

Originality/value

This study first explores the positive complementarity between the two cross-border learning mechanism in sharping EEEs 2019 innovation performance and identifies the condition to realize the synergistic effect of learning-by-exporting and learning-by-technology-importing.

Details

European Journal of Marketing, vol. 53 no. 2
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 27 March 2023

Sunitha Raju

The focus of this paper is to provide an assessment of the impact of imports from China on Indian manufacturing and capture the multifarious dimensions of India–China bilateral…

Abstract

Purpose

The focus of this paper is to provide an assessment of the impact of imports from China on Indian manufacturing and capture the multifarious dimensions of India–China bilateral trade flows. By examining the comparative disadvantage imports (RCA<1), the paper critically examines their significance on India's industry output and performance and underlines factors beyond trade competitiveness.

Design/methodology/approach

For examining the impact of India's manufacturing imports from China on industry performance, four stages of analysis is adopted. First, the imports with RCA <1 have been identified. For these, BRCA was also computed. Second, trends in industry performance associated with high imports from China. Third, for estimating the impact of imports on industry output, augmented production function was specified and estimated with imports from China as a potential determinant. And fourth, comparison of industry performance between India and China.

Findings

The impact of imports from China on industry output is positive and significant. A 1% increase/decrease in the share of China in world imports will result in output increasing by 0.31%. The rise in imports from China seems to be on account of non-availability of necessary intermediate and capital goods domestically, thereby making these imports critical and complementary for production. This negates the threat perception of imports from China.

Research limitations/implications

The paper recognizes the need for understanding the firm heterogeneity in import decisions and R&D intensity of imports. Across industries, the drivers for firms' decisions to import are “learning by importing’ and “self-selection” (Camino-Magro et al., 2020). Also, another important dimension at the firm-level analysis is the elasticity of substitution between foreign and domestic inputs. If the elasticity of substitution is low then high import barriers will lead to reduction of domestic output. These firm-level issues are important for effective policy interventions.

Practical implications

One, the inward looking focus of the industry which is exhibited in low export intensity will not provide the necessary impetus to propel the manufacturing sector to a higher technology frontier and translate the productivity gains to export competitiveness. Two, unless the domestic manufacturing is propelled from the current low/medium technology to high technology products, the current policy thrust on “self-reliance” cannot be realized.

Originality/value

Analysis is based on manufacturing imports with RCA<1 from China thereby underlining factors beyond trade competitiveness not covered by RCA methodology. Complementing the quantitative analysis with economic policy developments in China and India and contrasting the same has provided insights into the real factors determining India–China bilateral trade.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 26 July 2011

Zheng‐wei Li, Cindy Millman and Ren‐yong Chi

Innovation is becoming the key approach for firms to achieve sustainable competitive advantages. The purpose of this paper is to examine whether government public R&D subsidies…

2045

Abstract

Purpose

Innovation is becoming the key approach for firms to achieve sustainable competitive advantages. The purpose of this paper is to examine whether government public R&D subsidies have a positive impact on firms' private R&D investment (RDI) under globalization; this paper also investigates the impact of international trade on firms' private RDI in China.

Design/methodology/approach

The paper empirically tests the government support and international trade on firms' private RDI. An online survey was conducted as well as collaborated with the Department of Science and Technology of Zhejiang Province in 2006. The sample was obtained from more than 1,000 firms in high‐tech industries in Zhejiang province, and covers the year 2003‐2005. Linear regression was used for the firm‐level estimations.

Findings

The empirical results indicate that public R&D subsidies and disembodied technology imports positively and significantly impact on firms' private RDI, while non‐high‐tech product exports and embodied technology imports do not have positive effects. Moreover, the results show that high‐tech product exports are positively associated with firms' private RDI but not significantly.

Originality/value

The paper's findings extend the existing understanding of the determinants of firms' RDI in less developed countries, such as China. Moreover, unlike most extant studies, the authors investigate different types of exports and imports and their impacts on firms' RDI, respectively.

Details

Journal of Science and Technology Policy in China, vol. 2 no. 2
Type: Research Article
ISSN: 1758-552X

Keywords

Article
Publication date: 25 May 2018

Gongming Qian, Bin Liu and Qingtao Wang

Although there has been much research on government support for export in China and other emerging economies, considerably less attention has been given to government…

Abstract

Purpose

Although there has been much research on government support for export in China and other emerging economies, considerably less attention has been given to government subsidy-related importing activity in China. This study aims to propose that the government subsidies as the source of financial resources produce a significant increase of imports, as the firms are more likely to engage actively in importing technology-related products which are conducive for China’s future innovation. However, state ownership in firms negatively moderates this relationship and holds back technology imports. Improved formal regulatory institutions do not help to improve but rather weaken this relationship.

Design/methodology/approach

To investigate how government policy affects imports of strategic resources in China, all of the listed firms on Chinese stock markets (from 2008 to 2014) have been selected, the firms that are engaged in exporting and importing activities. The data from the China Stock Market & Accounting Research database have been selected and merged with those of the General Administration Customs in China. A panel analysis has been done with several robustiness tests.

Findings

First, the study indicates that government subsidies are a driving force for the development of importing activities. Second, it finds conflicts of interests between government subsidies and state ownership of a firm, as increased ownership will weaken and even negate the positive effect of a government policy, thus negatively affecting the national competitiveness in the long run. Third, it is important to take into account the issue on different levels of institutional development, even allowing for the fact that a nationwide government policy is applied to the firms located in all corners of the country.

Research limitations/implications

The authors suggested a regional difference in regulatory development but did not find the proposed direction. In their future study, the authors will validate and generalize this intriguing substitutional effect. They expect the results will help the government to ensure that it can fulfill a policy (e.g. regulation) down to every gross-roots organization so the development of regulatory infrastructure will help the firm to obtain and accumulate strategic resources through increased imports of them. Another direction of their future study will explore how government policy will prompt the firms to increase their spending so that they can possess plenty of “stamina” for their future development.

Practical implications

Different levels of institutional development exist in China even allowing for the fact that a nationwide government policy should be applied to all firms within the territory. This certainly has impacts on technology imports and thus creates difficulties for firms located in the western parts of China about which the government is particularly concerned. The government needs to ensure that its policies (laws and regulations) can be fulfilled down to every gross-roots organization so that the development of regulatory infrastructure can be inclusive and pervasive, given its influence on technology importation and indigenization.

Originality/value

Both of the theoretical and empirical work centered on policy initiatives and particularly government subsidies in emerging economies that significantly influence imports of strategic resources, a means with which the firm is better able to maintain and develop its competitive advantages, particularly in an economy with institutional void. Relatedly, the results on a causal relationship help envision a transcending trajectory of China’s economy, suggesting that businesspeople should capitalize on the policy advantage so that they are better able to sustain their long-term development. The results also present implications for policymakers to encourage and support strategic move toward such import endeavors.

Details

Multinational Business Review, vol. 26 no. 4
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 1 January 1992

Priyatosh Maitra

The recent collapse of so‐called socialist economies has raisedfundamental questions about whether a socialist economy could be builton imported capitalism. Russia′s socialist…

Abstract

The recent collapse of so‐called socialist economies has raised fundamental questions about whether a socialist economy could be built on imported capitalism. Russia′s socialist development was based, from the beginning, on Western capitalist technology from the time of its introduction in the late nineteenth century; the manner of this attempt may account for socialism′s premature demise. Could a socialist system be built in an economy that has not undergone a sufficient capitalist transformation? Lenin′s New Economic Policy is regarded by some as the step intended to fulfil this condition. But before it had reached its mature phase, Stalin′s “Industry First Approach” with the help of technology from mature capitalist economies, but of course under strict socialist control of production and distribution, misled the direction of the socialist transformation of Russian society. Will socialist economic development with imported technology inevitably end up in a free enterprise economy, as is happening in the Soviet Union? Discusses these questions beginning with an analysis of the three stages of socialist development attempted in the USSR, with a brief review of sources of technological change, and ending with the causes behind the return of a socialist economy to a market economy.

Details

International Journal of Social Economics, vol. 19 no. 1
Type: Research Article
ISSN: 0306-8293

Keywords

Article
Publication date: 3 August 2015

Liang Wan, Biao Luo, Tieshan Li, Shanyong Wang and Liang Liang

– This paper aims to investigate the relation between technological innovation modes and their impact on eco-efficiency of industrial enterprises in China.

Abstract

Purpose

This paper aims to investigate the relation between technological innovation modes and their impact on eco-efficiency of industrial enterprises in China.

Design/methodology/approach

This paper first constructs a model to evaluate and measure the eco-efficiency of industrial enterprises in China from 2006 to 2010. Second, this paper compares the role of technological innovation modes – specifically, domestic independent innovation, foreign technology import and domestic technology transfer – in improving eco-efficiency of industrial enterprises in the Eastern, Central and Western regions of China by logarithmic regression.

Findings

The study finds that domestic independent innovation has a positive significant influence in improving eco-efficiency of industrial enterprises in the Eastern region; domestic technology transfer has a positive significant role in the Central region; and foreign technology import and domestic technology transfer positively affect the Western region.

Originality/value

This paper is the first to identify the role of technological innovation modes in improving eco-efficiency. The findings can help enterprises in the three regions adopt the most effective technological innovation mode. In addition, the results provide valuable insights into policy development to improve China’s overall eco-efficiency and to balance economic and industrial development among the three regions.

Details

Nankai Business Review International, vol. 6 no. 3
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 30 April 2021

Dingping Cheng and Sumei Gan

The purpose of this study is mainly to investigate the stimulating effect on technology transactions of trade competition resultant from RMB appreciation.

Abstract

Purpose

The purpose of this study is mainly to investigate the stimulating effect on technology transactions of trade competition resultant from RMB appreciation.

Design/methodology/approach

This study uses Chinese provincial panel data from 1998 to 2015 and utilizes GMM method to estimate the stimulating effect of RMB appreciation on technical transactions through trade competition.

Findings

The results demonstrate that RMB appreciation can encourage enterprises to make use of domestic technology market resources for innovation. Specifically, the increase in imports due to the appreciation of RMB can generate technology spill-over and significantly promote technology trade. The export competition resultant from RMB appreciation can also encourage domestic and foreign enterprises to enhance export competitiveness through increased technology transactions.

Originality/value

The current research investigates the impact of exchange rate on independent innovation, but this study demonstrates the influence of exchange rate on technology transactions. In addition, the data in this study cover 1998–2015 in China and thus contributes to determining the effects of exchange rate appreciation in emerging countries.

Details

International Journal of Emerging Markets, vol. 18 no. 2
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 13 June 2023

Muhammad Luqman and Ghulam Murtaza

The main purpose of this study is to examine the impact of imported inputs on firms' productivity in selected South Asian economies, namely Pakistan, India and Bangladesh…

Abstract

Purpose

The main purpose of this study is to examine the impact of imported inputs on firms' productivity in selected South Asian economies, namely Pakistan, India and Bangladesh. Furthermore, this study explores the complementarity between firms' capabilities and imported inputs in an augmented productivity framework.

Design/methodology/approach

A dataset comprising 7117 manufacturing firms of selected South Asian economies was taken from the World Bank for 2013 and 2014. The empirical analysis was based on stochastic frontier models, the ordinary least square method and instrumental variable estimation techniques.

Findings

The empirical results show that imported inputs have positive and significant effects on the firms' productivity in the selected countries. Moreover, the study findings demonstrate that firms' capabilities play a complementary role in expanding the firms' production frontier.

Practical implications

The study outcomes suggest that reducing tariffs on imported inputs will enhance the firms' productivity in the selected emerging economies. However, the study further finds that the potential gain of imported inputs is conditional on the firm's capabilities. It implies that firms operating in these countries can improve their performance by allocating more resources to capabilities, such as workers’ training, management and internal R&D effort.

Originality/value

The existing literature on the subject is sceptical about the positive impact of imported inputs on firms' productivity in the case of developing countries. In this regard, the shortage of skilled labour and firms' capabilities are compelling rationales that need to be explored. Thus, the potential contribution of the study lies in explaining the moderating role of firm's capabilities operating in the selected emerging economies in the nexus of imported inputs and productivity.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 16 September 2013

Zouhair Mrabet and Charfeddine Lanouar

The purpose of this paper is to focus on the impact of trade openness and technology import on the change in demand structure of employment toward skilled workers. Because of the…

Abstract

Purpose

The purpose of this paper is to focus on the impact of trade openness and technology import on the change in demand structure of employment toward skilled workers. Because of the limited number of empirical papers done in the case of Tunisia, this research investigates whether these factors had similar effects on relative labor demand in Tunisia to those observed in the international literature.

Design/methodology/approach

For this purpose, the paper uses a manufacturing industries database provided by the Tunisian National Institute, the Quantitative Economic Institute and Comtrade of United Nations for six manufacturing industries. The methodology used here is a panel data technique, and consists of estimating a dynamic relative employment equation.

Findings

Empirical results show that trade liberalization and technology change positively affect relative employment of Tunisian manufacturing industries which confirms the existence of skill biased technological change that contributes to increase the relative demand for skilled workers.

Originality/value

The paper adds to existing literature by studying for the first time the case of Tunisian manufacturing industries by using dynamic model. The paper deals also with an econometrics issues related to the use of suitable estimation methodology in the case of dynamic panel data at macroeconomics level.

Details

African Journal of Economic and Management Studies, vol. 4 no. 3
Type: Research Article
ISSN: 2040-0705

Keywords

Article
Publication date: 15 July 2021

Abdul Rauf, Ying Ma and Abdul Jalil

While previous studies find innovation to be an essential driver of export growth, the existing literature has neglected the role of different dimensions of technological…

Abstract

Purpose

While previous studies find innovation to be an essential driver of export growth, the existing literature has neglected the role of different dimensions of technological innovation in export performance, especially in emerging countries. In particular, much less attention has been provided to investigate how enhancing innovation activities in more technical industries influence the relationship between technological innovation and export. Purpose of this paper is to present a unified framework to empirically investigate the integrated impact of the various technological innovation dimensions on export performance of industrial enterprises in China.

Design/methodology/approach

Using a panel dataset of enterprise-level data classified into China’s two-digit capital- and technology-intensive manufacturing industries for the 1998–2016 period and applying system-GMM regressions to control for the problem of endogeneity, the authors empirically investigate the integrated impact of a variety of the dimensions of technological innovation on export.

Findings

The authors find that: (1) Domestic R&D efforts and technology spillovers from foreign investment are critical determinants for capital- and technology-intensive exports. (2) External technology may not automatically contribute to export success whereas the interaction of external technology with domestic skill and expertise is a necessary condition for global competitiveness. (3) There exists complementarity between domestic and foreign innovation efforts when they jointly determine export. (4) Chinese government’s trade and innovation policies have significantly contributed to its export growth. Also, the authors examine that the extent of the effect of innovation on export depends upon the type of industry and it is found to be greater in capital- and technology-intensive industries.

Originality/value

This paper fills the research gap in existing literature by distinguishing between different dimensions of technological innovation and integrating them into a unified framework to empirically investigate their impact on export performance of industrial enterprises in emerging countries. The study provides important insights for policymakers.

Details

European Journal of Innovation Management, vol. 26 no. 1
Type: Research Article
ISSN: 1460-1060

Keywords

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