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Learning from trade through innovation: Causal link between imports, exports and innovation in Spanish microdata

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  • Jože.P.Damijan
  • ÄŒrt. Kostevc

Abstract

The paper explores the learning from trade hypothesis. Standardized research approach searchs for learning e¤ects from trade focusing solely on exports, whereby …rm’s learning e¤ects are accounted in the form of total factor productivity improvements. In contrast, this papers de…nes a …rm learning from trade in terms of introduction of either new products or processes induced by its import and export links with foreign markets. By using microdata for a large sample of Spanish …rms, including data on innovation and trade, we …nd clear sequencing between imports, exports and innovation. The results suggest that …rms learn primarily from import links, which enables them to innovate products and processes and to dress up for starting to export. In a sequence, exporting may enable …rms to introduce further innovations. These positive learning e¤ects from trade, however, seem to be limited to small and partially medium …rms only. On the other side, …rms that are closer to the relevant technological frontier seem to bene…t more from trading activities in terms of innovation than the technological laggard fi…rms.

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Bibliographic Info

Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 26410.

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Date of creation: 2010
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Handle: RePEc:lic:licosd:26410

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Keywords: Â…rm heterogeneity; innovation; exports; imports; matching;

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References

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  26. repec:fth:inseep:9833 is not listed on IDEAS
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Citations

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Cited by:
  1. Carlo Altomonte & Tommaso Aquilante & Gábor Békés & Gianmarco I. P. Ottaviano, 2014. "Internationalization and Innovation of Firms: Evidence and Policy," CEP Special Papers 032, Centre for Economic Performance, LSE.
  2. Wagner, Joachim, 2011. "International Trade and Firm Performance: A Survey of Empirical Studies since 2006," IZA Discussion Papers 5916, Institute for the Study of Labor (IZA).
  3. Békés, Gábor & Halpern, László & Muraközy, Balázs, 2013. "Külkereskedelem és a vállalatok közötti különbségek
    [Heterogeneous firms and foreign trade]
    ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 1-24.
  4. M.A. Boermans & H.J. Roelfsema, 2013. "The Effects of Internationalization on Innovation: Firm-Level Evidence for Transition Economies," Working Papers 12-04, Utrecht School of Economics.
  5. Neil Foster-McGregor & Anders Isaksson & Florian Kaulich, 2013. "Importing, Productivity and Absorptive Capacity in Sub-Saharan African Manufacturing Firms," wiiw Working Papers 105, The Vienna Institute for International Economic Studies, wiiw.

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