Dissecting the impact of innovation on exporting in Turkey

Alessia Lo Turco and Daniela Maggioni

No 388, Working Papers from Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali

Abstract: Making use of an original firm level dataset, we explore the causal impact of innovation on the manufacturing firm export activity in Turkey. We model process and product innovation as separately - through cost savings and product quality improvements, respectively - affecting the firm profitability and, consequently, the firm export propensity. This modeling choice highlights heterogeneous effects across high and low income destination markets. In a Multiple Propensity Score Matching framework, we, then, test the impact of each innovation activity and of their joint adoption. We find that only the latter fosters the first time entry into exporting, when the destination market is high income. Nevertheless, innovation positively affects the firmexport propensity. New product introduction is more rewarding than process innovation, especially for exporting to lowincome economies. Process innovation, though, strengthens the positive role of product innovation for exporting to more advanced markets.

Keywords: Turkey; export; process innovation; product innovation (search for similar items in EconPapers)
JEL-codes: D22 F10 F14 O31 (search for similar items in EconPapers)
Pages: 29
Date: 2013-01
New Economics Papers: this item is included in nep-ara, nep-cse, nep-ino, nep-int and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://docs.dises.univpm.it/web/quaderni/pdf/388.pdf First version, 2013 (application/pdf)

Related works:
Journal Article: Dissecting the impact of innovation on exporting in Turkey (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:anc:wpaper:388

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