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Assessing the Effects of International Trade on Private R&D Expenditures in the Food Processing Sector

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  • Pascal L. Ghazalian

Abstract

This study empirically investigates the effects of imports and exports on private research and development (R&D) expenditures in the food processing sector. An analytical framework discussing the various effects of international trade on R&D activities is presented. This is followed by an empirical analysis that uses a dynamic empirical specification for current R&D expenditures and for a cumulative measure of R&D stock. The empirical investigation is applied to a panel dataset covering Organization for Economic Cooperation and Development's countries. The empirical results show that increases in import intensity levels induce reductions in private R&D expenditures whereas increases in export intensity levels promote larger private R&D expenditures. These outcomes imply that the R&D-enhancing effects of exports are countered by the R&D-reducing effects of imports.

Suggested Citation

  • Pascal L. Ghazalian, 2012. "Assessing the Effects of International Trade on Private R&D Expenditures in the Food Processing Sector," Industry and Innovation, Taylor & Francis Journals, vol. 19(4), pages 349-369, May.
  • Handle: RePEc:taf:indinn:v:19:y:2012:i:4:p:349-369
    DOI: 10.1080/13662716.2012.694679
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    File URL: http://hdl.handle.net/10.1080/13662716.2012.694679
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    Cited by:

    1. repec:bla:jageco:v:68:y:2017:i:2:p:427-450 is not listed on IDEAS
    2. Taba Yumiko, 2016. "Optimal Product R&D Policies with Endogenous Quality Choices and Unilateral Spillover," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(1), pages 365-391, January.

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