(Correspondent: Wang Tianjian) The paper “The Effect of Export Quality Restrictions of Key Intermediates on Limitation and Innovation: Based on the Analysis of North-South Product Quality Ladders Model”, jointly completed by Professor Xue Jun, Associate Professor Wang Zifeng and doctoral student *******aolin, was published in China Industrial Economies, one of the top domestic journals of economics, in the 12^th issue of 2021.

The paper develops a two-country dynamic general equilibrium model with key intermediates sectors in which key intermediates are assumed to be irreplaceable, and then quantitatively simulates the effects of export restrictions on key intermediates from the North on Northern innovation, Southern imitation and welfare of the two countries. Additionally, it also estimates the moderating effects of intellectual property rights(IPR) protection and intermediates tariffs. The simulation results show that the export quality restrictions of key intermediates decrease Northern innovation and transnational transfer of production, but increase Southern imitation. The decrease of transnational investment makes it impossible for two countries to give full play to their comparative advantages, which will widen the North-South income gap and damage their welfare as well. Neither the change of IPR production nor intermediate tariffs can change the influence direction of export quality restrictions of key intermediates on innovation and imitation. However, stronger IPR protection strengthens the innovation effect and weakens the imitation effect, while higher intermediates tariffs have negative moderating effects on both. This study is of great significance for understanding the role of key intermediates in endogenous technological innovation, and also provides policy reference for China to break through the technological blockade of developed countries and seize the commanding heights of the scientific and technological revolution.

Founded in 1984, China Industrial Economies is an academic journal sponsored by Institute of Industrial Economies of Chinese Academy of Social Science. It is widely recognized as an authoritative journal of economics by universities and research institutions in China.