On “Trade Induced Technical Change: The Impact of Chinese Imports on Innovation, IT, and Productivity”

Douglas L. Campbell*, Karsten Mau

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Bloom et al. (2016) find that Chinese import competition induced a rise in patenting, IT adoption, and total factor productivity (TFP) by up to 30% of the total increase in Europe in the late 1990s and early 2000s. We uncover several coding errors in an important robustness check of their patent results. When corrected, we find no statistically significant relationship between Chinese competition and patents. Other specifications in the original paper use a problematic log(1+patents) transformation. This normalization induces bias given low average patent counts for firms in China-competing sectors and rapidly declining patents across the sample.
Original languageEnglish
Pages (from-to)2555–2559
Number of pages5
JournalReview of Economic Studies
Volume88
Issue number5
DOIs
Publication statusPublished - Oct 2021

Keywords

  • Patents
  • China
  • Europe
  • Textiles
  • Trade shocks
  • Manufacturing

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