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Direction of Causality in Innovation-Exporting Linkage: Evidence on Korean Manufacturing

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  • Chin Hee HAHN

    (Chin Hee HAHN Kyungwon University)

  • Chang-Gyun PARK

    (Chang-Gyun PARK Chung-Ang University)

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    Abstract

    This paper examines various possible bi-directional causal relationships among exporting, innovation, and productivity utilizing plant-level data on Korean manufacturing. Based on both propensity score matching technique and three-variable panel VAR estimation, we find a significantly positive effect of exporting on new product introduction. The effect for the other direction of causality is estimated to be positive but not significant. Panel VAR estimation results suggest that plant productivity has a significantly positive effect on both exporting and new product introduction.

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    File URL: http://www.eria.org/ERIA-DP-2012-07.pdf
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    Bibliographic Info

    Paper provided by Economic Research Institute for ASEAN and East Asia (ERIA) in its series Working Papers with number DP-2012-07.

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    Length: 39 pages.
    Date of creation: 01 Jun 2012
    Date of revision:
    Handle: RePEc:era:wpaper:dp-2012-07

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    References

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    1. Robert C. Feenstra & Madani & Dorsati & Yang & Tzu-Han & Liang & Chi-Yuan, . "Testing Endogenous Growth In South Korea And Taiwan," Department of Economics 97-16, California Davis - Department of Economics.
    2. Bee Yan Aw & Mark J. Roberts & Daniel Yi Xu, 2011. "R&D Investment, Exporting, and Productivity Dynamics," American Economic Review, American Economic Association, vol. 101(4), pages 1312-44, June.
    3. Andrew B. Bernard & Stephen Redding & Peter K. Schott, 2004. "Comparative advantage and heterogeneous firms," LSE Research Online Documents on Economics 3700, London School of Economics and Political Science, LSE Library.
    4. Andrew B. Bernard & Stephen Redding & Peter K. Schott, 2006. "Multi-Product Firms and Trade Liberalization," CEP Discussion Papers dp0769, Centre for Economic Performance, LSE.
    5. Ebling, Günther & Janz, Norbert, 1999. "Export and innovation activities in the German service sector: empirical evidence at the firm level," ZEW Discussion Papers 99-53, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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    Cited by:
    1. Mohammad Movahedi & Olivier Gaussens, 2013. "Les effets de l’exportation sur l’innovation et la productivité : Analyse empirique sur un échantillon de PMI," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201307, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.

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