IDEAS home Printed from https://ideas.repec.org/a/taf/applec/v41y2009i3p351-361.html
   My bibliography  Save this article

Business expenditures on R&D and trade performances in Australia: is there a link?

Author

Listed:
  • Ruhul Salim
  • Harry Bloch

Abstract

This article, empirically examines the dynamic causal link between business research and development (R&D) expenditures and trade performance in Australia. Based on cointegration and error-correction modelling, Granger causality tests, variance decomposition and impulse response functions are used for this purpose. The results show that a long-run relationship exists between the trade variables and R&D expenditure and a unidirectional causality run from R&D expenditure to exports, imports and net exports. Further, the variance decomposition and impulse response functions confirm that, a significant portion of fluctuations in the trade variables beyond the sample period is explained by R&D expenditure. Therefore, government policies that lift expenditures on business R&D are shown to contribute to the narrowing of Australia's chronic trade deficits.

Suggested Citation

  • Ruhul Salim & Harry Bloch, 2009. "Business expenditures on R&D and trade performances in Australia: is there a link?," Applied Economics, Taylor & Francis Journals, vol. 41(3), pages 351-361.
    • Handle: RePEc:taf:applec:v:41:y:2009:i:3:p:351-361
    DOI: 10.1080/00036840601007302
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840601007302
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00036840601007302?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Bloch, Harry & Rafiq, Shuddhasattwa & Salim, Ruhul, 2015. "Economic growth with coal, oil and renewable energy consumption in China: Prospects for fuel substitution," Economic Modelling, Elsevier, vol. 44(C), pages 104-115.
    2. Bloch, Harry & Rafiq, Shuddhasattwa & Salim, Ruhul, 2012. "Coal consumption, CO2 emission and economic growth in China: Empirical evidence and policy responses," Energy Economics, Elsevier, vol. 34(2), pages 518-528.
    3. Kamrul Hassan & Ruhul Salim & Harry Bloch, 2015. "Demographic transition and the real exchange rate in Australia: An empirical investigation," New Zealand Economic Papers, Taylor & Francis Journals, vol. 49(1), pages 62-77, April.
    4. Lota D. Tamini & Aristide B. Valéa, 2021. "Investment in research and development and export performances of Canadian small and medium‐sized agri‐food firms," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 69(3), pages 311-336, September.
    5. Richard Harris & John Moffat, 2011. "R&D, Innovation and Exporting," SERC Discussion Papers 0073, Centre for Economic Performance, LSE.
    6. Simplice A. Asongu, 2017. "Mobile Phone Innovation and Technology-driven Exports in Sub-Saharan Africa," Research Africa Network Working Papers 17/042, Research Africa Network (RAN).
    7. Konstantakis, Konstantinos N. & Michaelides, Panayotis G., 2017. "Does technology cause business cycles in the USA? A Schumpeter-inspired approach," Structural Change and Economic Dynamics, Elsevier, vol. 43(C), pages 15-26, December.
    8. Lota Tamini & Aristide B. Valéa, 2019. "Innovation Activities and Export Performance of Canadian Small and Medium-Sized Agri-Food Firms," CIRANO Working Papers 2019s-09, CIRANO.
    9. Kishor Sharma & Pemasiri J. Gunawardana, 2012. "The role of price and nonprice factors in predicting Australia's trade performance," Applied Economics, Taylor & Francis Journals, vol. 44(21), pages 2679-2686, July.
    10. Shimin Chen & Bin Srinidhi & Lixin (Nancy) Su & Jamie Y Tong, 2018. "The separate and joint effects of the market for corporate control and board effectiveness on R&D valuation," Australian Journal of Management, Australian School of Business, vol. 43(2), pages 203-224, May.
    11. Simplice A. Asongu & Ndemaze Asongu, 2019. "The Role of Mobile Phones in Governance-Driven Technology Exports in Sub-Saharan Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 849-867, June.
    12. Rong Li & Yi-Fei Du & Hong-Juan Tang & Francis Boadu & Min Xue, 2019. "MNEs’ Subsidiary HRM Practices and Firm Innovative Performance: A Tacit Knowledge Approach," Sustainability, MDPI, vol. 11(5), pages 1-18, March.
    13. Ruhul A. Salim & Shuddhasattwa Rafiq & A. F. M. Kamrul Hassan, 2008. "Causality And Dynamics Of Energy Consumption And Output: Evidence From Non-Oecd Asian Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 33(2), pages 1-26, December.
    14. Rafiq, Shuddhasawtta & Salim, Ruhul & Bloch, Harry, 2009. "Impact of crude oil price volatility on economic activities: An empirical investigation in the Thai economy," Resources Policy, Elsevier, vol. 34(3), pages 121-132, September.
    15. Rodil, Óscar & Vence, Xavier & Sánchez, María del Carmen, 2016. "The relationship between innovation and export behaviour: The case of Galician firms," Technological Forecasting and Social Change, Elsevier, vol. 113(PB), pages 248-265.
    16. Konstantakis, Konstantinos N. & Michaelides, Panayotis G., 2017. "Technology and Business Cycles: A Schumpeterian Investigation for the USA," MPRA Paper 80636, University Library of Munich, Germany.
    17. Diana Barros, Aurora A.C. Teixeira, 2021. "The technology balance of payments and international competitiveness: a panel data analysis of southern European countries, 2000-2017," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 18(1), pages 105-136, June.

    More about this item

    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:taf:applec:v:41:y:2009:i:3:p:351-361. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEC20 .

    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.