Liu, Mengxiao; Wang, Luhang; Yi, Yimin - 2022
This paper classifies innovation as quality-improving or cost-reducing and estimates a dynamic model incorporating firm … export, quality innovation, and cost innovation decisions. Estimation results show that export, quality innovation, and cost … innovation increase next-period firm productivity by 1.39%, 1.23%, and 1.27%, respectively. Additionally, quality innovation …