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Exports, R&D and productivity: a test of the Bustos-model with German enterprise data

Joachim Wagner ()

Economics Bulletin, 2012, vol. 32, issue 3, 1942-1948

Abstract: This paper presents the first empirical test with German firm level data of a hypothesis derived by Bustos (AER 2011) in a model that explains the decision of heterogeneous firms to export and to engage in R&D. Using a non-parametric test for first order stochastic dominance it is shown that, in line with this hypothesis, the productivity distribution of firms with exports and R&D dominates that of exporters without R&D, which in turn dominates that of firms that neither export nor engage in R&D. These results are in line with findings for Argentina. The model, therefore, seems to be useful to guide empirical work on the relation between exports, R&D and productivity.

Keywords: Exports; R&D; productivity; Germany (search for similar items in EconPapers)
JEL-codes: F1 L6 (search for similar items in EconPapers)
Date: 2012-07-16
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