TY  - RPRT
        AU  - Matano, Alessia
AU  - Naticchioni, Paolo
        TI  - China’s Import Competition, Innovation and the Role of Unions
        PY  - 2025/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 17764
        UR  - https://www.iza.org/publications/dp17764
        AB  - This paper investigates the relationship between China’s import competition and the innovation strategies of domestic firms. Using firm level data from Italy spanning 2005-2010 and employing IV fixed effects estimation techniques, we find that the impact of China’s import competition on innovation varies depending on the type of goods imported (intermediate vs. final). Specifically, imports of final goods boost both product and process innovation, while imports of intermediate goods reduce both. Additionally, we extend the analysis to consider the role of unions in moderating these responses. We find that, in unionized firms, imports' impact on innovation is mitigated, specifically to protect workers' employment prospects.
        KW  - IV fixed effects estimations
KW  - China’s import competition
KW  - final and intermediate goods
KW  - product and process innovation
KW  - unions
        ER  -