The dynamic linkages among exports, R&D and productivity
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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| Length: | 38 pages |
| Date of creation: | Mar 2013 |
| Date of revision: | |
| Handle: | RePEc:eec:wpaper:1308 |
| Contact details of provider: | Postal: Edifici Departamental Oriental, Campus dels Tarongers, Avda. dels Tarongers, S/N (4P15), 46022 - València Phone: 963 82 83 49 Fax: 963 82 83 54 Web page: http://www.estructuraeconomica.es Email: More information through EDIRC
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