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The Effect of Innovation on Agricultural and Agri-food Exports in OECD Countries

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  • Ghazalian, Pascal L.
  • Furtan, William Hartley

Abstract

This paper investigates the effect of innovation on primary agricultural and processed food product exports among the Organization for Economic Cooperation and Development (OECD) countries. A theoretical gravity equation that accounts for innovation is derived. The empirical exercise uses panel data sets covering 21 OECD countries for the period 1990-2003. The R&D capital stock is employed as a tangible way of measuring innovation. Empirical results show that R&D has enhanced exports in the primary agricultural sector. Meanwhile, the market expansion effect of R&D appears to be more than offset by the market power effect in the food processing sector, resulting in a decrease in exports. Also, evidence was found of a positive vertical channeling effect through which R&D in the primary agricultural sector increases exports of processed food products.

Suggested Citation

  • Ghazalian, Pascal L. & Furtan, William Hartley, 2007. "The Effect of Innovation on Agricultural and Agri-food Exports in OECD Countries," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(03), December.
  • Handle: RePEc:ags:jlaare:7075
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    Cited by:

    1. repec:ucm:wpaper:05-13 is not listed on IDEAS
    2. Ghazalian, Pascal L., 2015. "Processed Food Trade of Greece with EU and Non-EU Countries: An Empirical Analysis," MPRA Paper 67084, University Library of Munich, Germany.
    3. PohlovaÌ , K. & Mezera, J., 2014. "Analysis of Development of Czech Foreign Trade in Foods and Beverages," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 6(4), December.
    4. Alarcón, Silverio & Sánchez, Mercedes, 2016. "Is there a virtuous circle relationship between innovation activities and exports? A comparison of food and agricultural firms," Food Policy, Elsevier, vol. 61(C), pages 70-79.
    5. Alarcón, Silverio & Sánchez, Mercedes, 2014. "Relations between innovation activities and exports in food and agriculture firms," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182974, European Association of Agricultural Economists.
    6. Isabel Álvarez González & Romilio Labra, 2013. "Identifying the role of natural resources in knowledge-based strategies of development," Working Papers del Instituto Complutense de Estudios Internacionales 1305, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.
    7. Azar, Goudarz, 2012. "Inpatriates and Expatriates: Sources of Strategic Human Capital for Multinational Food and Beverage Firms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 15(A).
    8. repec:bla:jageco:v:68:y:2017:i:2:p:427-450 is not listed on IDEAS

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