Business expenditures on R&D and trade performances in Australia: is there a link?
AbstractThis article, empirically examines the dynamic causal link between business research and development (R&D) expenditures and trade performance in Australia. Based on cointegration and error-correction modelling, Granger causality tests, variance decomposition and impulse response functions are used for this purpose. The results show that a long-run relationship exists between the trade variables and R&D expenditure and a unidirectional causality run from R&D expenditure to exports, imports and net exports. Further, the variance decomposition and impulse response functions confirm that, a significant portion of fluctuations in the trade variables beyond the sample period is explained by R&D expenditure. Therefore, government policies that lift expenditures on business R&D are shown to contribute to the narrowing of Australia's chronic trade deficits.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics.
Volume (Year): 41 (2009)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEC20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Kishor Sharma & Pemasiri J. Gunawardana, 2012. "The role of price and nonprice factors in predicting Australia's trade performance," Applied Economics, Taylor & Francis Journals, vol. 44(21), pages 2679-2686, July.
- Ruhul A. Salim & Shuddhasattwa Rafiq & A. F. M. Kamrul Hassan, 2008. "Causality And Dynamics Of Energy Consumption And Output: Evidence From Non-Oecd Asian Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 33(2), pages 1-26, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.