The Geoeconomics of Trade Infrastructure and the Innovation Competition between 
China and the US

Konrad, Kai A.

doi:10.2139/ssrn.4624499

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The Geoeconomics of Trade Infrastructure and the Innovation Competition between China and the US

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Konrad, Kai A.
Public Economics, MPI for Tax Law and Public Finance, Max Planck Society;

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引用

Konrad, K. A. (2023). The Geoeconomics of Trade Infrastructure and the Innovation Competition between China and the US. Working Paper of the Max Plank Insitute for Tax Law and Public Finance, No. 2023-14. doi:10.2139/ssrn.4624499.

引用: https://hdl.handle.net/21.11116/0000-000F-1FBA-E

要旨

China's high investment in foreign trade structures and the extraordinary innovation efforts of their firms are closely related. They can be explained as a subgame perfect equilibrium outcome of an asymmetric strategic-trade model, in which infrastructure investment renders successful innovation by exporting companies in China more profitable, and in which China and the US have to choose different roles in this innovation competition. That China ends up in the role of the more active investor and the more innovative competitor in this process can be explained by China's larger export sector and by their competition policy, which is more focused on national champions.