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Exposure to Foreign Markets and Plant-Level Innovation: Evidence from Chile and Mexico

In: Not Just Neighbors The Remarkable Economic Relationships in North America

Author

Listed:
  • Roberto Alvarez
  • Raymond Robertson

Abstract

Unlike most studies that calculate productivity as a residual, this study uses detailed plant-level data to examine the relationship between exposure to foreign markets and specific innovations including product design, investment in new tools (such as computers), research and development, and innovation in products and processes. The results suggest that exposure to foreign markets is positively related to most types of technology. The effects seem to be stronger in recently liberalized Mexico, which may suggest that the innovation gains from liberalization are greatest in the early stages of liberalization.

Suggested Citation

  • Roberto Alvarez & Raymond Robertson, 2026. "Exposure to Foreign Markets and Plant-Level Innovation: Evidence from Chile and Mexico," World Scientific Book Chapters, in: Raymond Robertson (ed.), Not Just Neighbors The Remarkable Economic Relationships in North America, chapter 14, pages 465-496, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789819825295_0014
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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • P52 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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