IDEAS home Printed from https://ideas.repec.org/a/oup/jeurec/v21y2023i4p1318-1362..html

The Dynamic Impact of Exporting on Firm R&D Investment

Author

Listed:
  • Florin G Maican
  • Matilda Orth
  • Mark J Roberts
  • Van Anh Vuong

Abstract

This article estimates a dynamic structural model of firm R&D investment in twelve Swedish manufacturing industries and uses it to measure rates of return to R&D and to simulate the impact of trade restrictions on the investment incentives. Export market profits are a substantial source of the expected return to R&D. R&D spending is found to have a larger impact on firm productivity in the export market than in the domestic market. Counterfactual simulations show that trade restrictions lower both the expected return to R&D and R&D investment level, thus reducing an important source of the dynamic gains from trade. A 10% tariff on Swedish exports reduces the expected benefits of R&D for the median firm by 18.6% and lowers the amount of R&D spending by 7.6% in the high-tech industries. The corresponding reductions in the low-tech industries are 20.6% and 5.5%, respectively. R&D adjustments in response to export tariffs mainly occur on the intensive, rather than the extensive, margin.

Suggested Citation

  • Florin G Maican & Matilda Orth & Mark J Roberts & Van Anh Vuong, 2023. "The Dynamic Impact of Exporting on Firm R&D Investment," Journal of the European Economic Association, European Economic Association, vol. 21(4), pages 1318-1362.
    • Handle: RePEc:oup:jeurec:v:21:y:2023:i:4:p:1318-1362.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/jeea/jvac065
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. is not listed on IDEAS
    2. Gong, Robin Kaiji & Li, Yao Amber & Manova, Kalina & Sun, Stephen Teng, 2025. "Tickets to the global market: First US patent award and Chinese firm exports," Journal of International Economics, Elsevier, vol. 157(C).
    3. Maican, Florin & Orth, Matilda, 2021. "Entry Regulations and Product Variety in Retail," CEPR Discussion Papers 15992, C.E.P.R. Discussion Papers.
    4. Iryna Rud & Mark Vancauteren & Hendrik W.H. Roekel & Michael Polder, 2023. "The Relationship Between R&D and Exports in Goods and Services of Firms in the Netherlands: An Empirical Analysis," Journal of Industry, Competition and Trade, Springer, vol. 23(3), pages 283-308, December.
    5. Liu, Mengxiao & Wang, Luhang & Yi, Yimin, 2022. "Quality Innovation, Cost Innovation, Export, and Firm Productivity Evolution: Evidence from the Chinese Electronics Industry," MPRA Paper 113270, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:jeurec:v:21:y:2023:i:4:p:1318-1362.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/jeea .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.