This paper investigates whether and how import competition affects firm innovation. Using China’s World Trade Organization (WTO) accession as a quasi-natural experiment, we find that import competition reduces firm innovation, which is consistent with the Schumpeterian effect. We also find...

The potential impacts of foreign acquisitions have long been debatable in both academic and policy circles in China, which have more or less shaped China's regulation policy regarding foreign acquisitions. This paper examines the causal effect of foreign acquisitions on the labor market in China...

This paper discusses a novel mechanism — worker training — in relation to the effect of output trade liberalization on firm productivity. Using disaggregated Chinese firm‐level production data from 2004 to 2006, we find strong evidence that output trade liberalization boosts firm...