Learning from trade through innovation: causal link between imports, exports and innovation in Spanish microdata
AbstractThe paper explores the learning from trade hypothesis. Standardized research approach searchs for learning eÃÂ¤ects from trade focusing solely on exports, whereby Ãâ¦rmÃâs learning eÃÂ¤ects are accounted in the form of total factor productivity improvements. In contrast, this papers deÃâ¦nes a Ãâ¦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 Ãâ¦rms, including data on innovation and trade, we Ãâ¦nd clear sequencing between imports, exports and innovation. The results suggest that Ãâ¦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 Ãâ¦rms to introduce further innovations. These positive learning eÃÂ¤ects from trade, however, seem to be limited to small and partially medium Ãâ¦rms only. On the other side, Ãâ¦rms that are closer to the relevant technological frontier seem to beneÃâ¦t more from trading activities in terms of innovation than the technological laggard fiÃâ¦rms.
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Bibliographic InfoPaper provided by Katholieke Universiteit Leuven in its series Open Access publications from Katholieke Universiteit Leuven with number urn:hdl:123456789/284209.
Date of creation: 2010
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Other versions of this item:
- JoÅ¾e.P.Damijan & ÄŒrt. Kostevc, 2010. "Learning from trade through innovation: Causal link between imports, exports and innovation in Spanish microdata," LICOS Discussion Papers 26410, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
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