The dynamic linkages among exports, R&D and productivity

Juan A. Mañez, María E. Rochina-Barrachina and Juan A. Sanchis-Llopis
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María E. Rochina-Barrachina: University of Valencia and ERICES
Juan A. Sanchis-Llopis: University of Valencia and ERICES
Authors registered in the RePEc Author Service: Juan A. Sanchis Llopis () and Maria Engracia Rochina Barrachina

No 1308, Working Papers from Department of Applied Economics II, Universidad de Valencia

Abstract: 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.

Keywords: export experience; R&D experience; endogenous Markov; Total Factor Productivity; learning-by-exporting; returns to innovation; GMM; dynamic bivariate probit (search for similar items in EconPapers)
Pages: 38 pages
Date: 2013-03
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ino and nep-int
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http://repecsrv.uv.es/paper/RePEc/pdf/eec_1308.pdf First version, 2013 (application/pdf)

Related works:
Journal Article: The Dynamic Linkages Among Exports, R&D and Productivity (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eec:wpaper:1308

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