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Export destinations, and company investments in R&D and capital

Author

Listed:
  • Ping-Lung Hsin

    (Graduate Institute of National Development, National Taiwan University)

  • Tobias Haepp

    (Graduate Institute of National Development, NTU & Chung-Hua Institution for Economic Research)

  • Yen-Lien Kuo

    (Department of Economics and Graduate Institute of Political Economy, National Cheng Kung University)

Abstract

We empirically analyze the role of different export destinations in the interrelationship between exporting and investments in R&D and fixed capital at the firm level. We employ a simultaneous equation multivariate Tobit model to account for censoring, interdependence, and endogeneity of our dependent variables. Our findings show that exports to high-income economies raise subsequent investments in R&D but reduce subsequent capital investments, while exporting to other destinations triggers an increase in capital investments without significant effects on R&D. This shows that only exporting to high-income destinations provides additional incentives for product quality upgrading, while other exports correlate with the generation of economies of scale.

Suggested Citation

  • Ping-Lung Hsin & Tobias Haepp & Yen-Lien Kuo, 2013. "Export destinations, and company investments in R&D and capital," Economics Bulletin, AccessEcon, vol. 33(4), pages 2851-2859.
    • Handle: RePEc:ebl:ecbull:eb-13-00629
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Exporting; R&D; capital investment; innovation; learning effects;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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