Study of the Impact of Trade Conflicts on Technological Innovation

Jiawei Gao

doi:10.54097/j6jhca44

Authors

Jiawei Gao

DOI:

https://doi.org/10.54097/j6jhca44

Keywords:

GMM estimation method; Principal component analysis method; Technological innovation; Trade conflict.

Abstract

This thesis utilizes cross-country panel data from Global Trade Alert and WTO databases, and adopts principal component analysis and dynamic panel system GMM estimation to conduct empirical research on the impact of trade conflicts on technological innovation. The results of the study show that trade conflicts are conducive to the improvement of the efficiency of technological innovation in each country, and the specific mechanism is that trade conflicts cause enterprises to lose their inherent market advantages and form the elimination system of the last-stage enterprises within the market to force them to carry out technological upgrading. As China is in a critical transition period from high-speed development to high-quality development, this thesis provides policy advice on how to improve China's technological innovation capacity through the implementation of trade policy.

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