Recently, the prestigious academic journal International Journal of Emerging Markets has accepted and published online the research paper on China’s trade protection authored by Associate Professor Huang Tao at School of Finance and Trade. The title of the paper is Trade protection and firm innovation in China. 

Abstract：We investigate the effect of trade protection on domestic firm innovation in China. Using a sample of Chinese A-share manufacturing companies from 2003 to 2019, we find robust evidence that trade protection significantly encourages firms’ patent application, particularly substantive patents: firms in industries with a larger number of trade protection will file more invention patent applications in the next few years, which is stronger in non-state-owned enterprises. Moreover, the mitigation of financial constraint is plausible channel that allows trade protection to promote innovation. Overall, we shed light on the real effects of trade protection and the determinants of innovation.

Keywords: Trade Protection; Innovation; Financial Constraint

JEL Classification: F51; O31

       Link to  the paper：https://www.emerald.com/insight/content/doi/10.1108/IJOEM-04-2022-0700/full/html

Introduction to the author：

HUANG Tao is an associate professor and masters’ supervisor at School of Finance and Trade. He received his PhD in Finance from Central University of Finance and Economics in 2022. His research areas include big data, asset pricing, corporate finance, and climate policy uncertainty. He has published academic papers in core journals, such as International Journal of Emerging Markets, International Review of Economics & Finance, Accounting & Finance and 《Macroeconomics》. He presided one key project for PhD of Central University of Finance and Economics, and participated in Major Projects of the National Social Science Foundation of China and National Natural Science Foundation of China. He was awarded the honor of “2021 Outstanding Reviewer” by China Financial Review International.

Download the paper:           HUANG Tao - trade protection and firm innovation in china.pdf