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Exporting, R&D, and absorptive capacity in UK establishments

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Author Info
Richard Harris
Qian Cher Li

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Abstract

This paper models the determinants of exporting (both in terms of export propensity and export intensity), with a particular emphasis on the importance of absorptive capacity and the endogenous link between exporting and undertaking R&D. Based on a merged dataset of the 2001 Community Innovation Survey and the 2000 Annual Respondents Database for the UK, our results suggest that establishment size plays a fundamental role in explaining exporting. Meanwhile, alongside other factors, undertaking R&D activities and having greater absorptive capacity (for scientific knowledge, international co-operation, and organizational structure) significantly reduce entry barriers into export markets, having controlled for self-selectivity into exporting. Nevertheless, conditional on entry into international markets, only greater absorptive capacity (associated with scientific knowledge) seems to further boost export performance in such markets, whereas spending on R&D no longer has an impact on exporting behaviour once we have taken into account its endogenous nature. Copyright 2009 , Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/oep/gpn011
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Publisher Info
Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 61 (2009)
Issue (Month): 1 (January)
Pages: 74-103
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Handle: RePEc:oup:oxecpp:v:61:y:2009:i:1:p:74-103

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  1. Facundo Albornoz & Matthew A Cole & Robert J R Elliott & Marco G Ercolani, 2008. "In Search of Environmental Spillovers," Discussion Papers 08-03, Department of Economics, University of Birmingham. [Downloadable!]
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This page was last updated on 2009-12-15.


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