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

  • Pascal L. Ghazalian
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    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.

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    Article provided by Taylor & Francis Journals in its journal Industry and Innovation.

    Volume (Year): 19 (2012)
    Issue (Month): 4 (May)
    Pages: 349-369

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    Handle: RePEc:taf:indinn:v:19:y:2012:i:4:p:349-369
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