Export, subsidy and innovation: China’s state-owned enterprises versus privately-owned enterprises

Laijun Luo, Yang Yang, Yuze Luo, Chang Liu

Research output: Journal PublicationArticlepeer-review

23 Citations (Scopus)


In this study, we advance the literature on export and government subsidy by examining their effects in the context of China, a fast-growing emerging economy, and comparing the effects across ownership of enterprises. We examine the relationship among export, government support and firms’ innovation capability, and how these relationships differ between state-owned and private owned enterprises, by using a large data sample of Chinese firms (2003–2007). First, we find that there exists an inverted U-shaped relationship between export and innovation in state-owned enterprises, but not in private owned enterprises. Second, there is a positive effect of government subsidy on firms’ innovation capability. Finally, from the sub-sample analyses, we identify differences in the impact of government support between SOEs and POEs. This study will inspire future research into these issues in the disciplines of marketing, management and international business.

Original languageEnglish
Pages (from-to)137-155
Number of pages19
JournalEconomic and Political Studies
Issue number2
Publication statusPublished - 2 Apr 2016


  • Export
  • government subsidy
  • innovation capability
  • inverted U-shaped relationship

ASJC Scopus subject areas

  • Sociology and Political Science
  • Economics and Econometrics
  • Political Science and International Relations


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