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The dynamic linkages among exports, R&D and productivity


  • Juan A. Máñez

    (University of Valencia and ERICES)

  • María E. Rochina-Barrachina

    (University of Valencia and ERICES)

  • Juan A. Sanchis-Llopis

    (University of Valencia and ERICES)


This paper estimates a dynamic model of a firm’s decision to export and invest in R&D, in which we allow past export and R&D experience to endogenously affect productivity. In our empirical strategy we proceed in two steps: in the first step, using as starting point the traditional control approach method to estimate total factor productivity, we consider a more general process driving the law of motion of productivity in which we recognise the potential role that export and R&D experience might have in shaping future firms’ productivity, and test whether this assumption holds; in the second step, we estimate a bivariate dynamic model of the firm’s decision to invest in R&D and export, in which we analyse the linkages among investing in R&D, exporting and productivity. Using a representative sample of Spanish manufacturing firms for the period 1990- 2009 we find that both export and R&D positively affect future productivity, which will drive more firms to self-select in those activities.

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  • Juan A. Máñez & María E. Rochina-Barrachina & Juan A. Sanchis-Llopis, 2013. "The dynamic linkages among exports, R&D and productivity," Working Papers 1308, Department of Applied Economics II, Universidad de Valencia.
  • Handle: RePEc:eec:wpaper:1308

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    References listed on IDEAS

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    export experience; R&D experience; endogenous Markov; Total Factor Productivity; learning-by-exporting; returns to innovation; GMM; dynamic bivariate probit;

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