R&D, productivity, and exports: Plant-level evidence from Indonesia

Chih-Hai Yang and Ying-Hui Chen

Economic Modelling, 2012, vol. 29, issue 2, 208-216

Abstract: This study examines the relation between productivity and exports in Indonesian manufacturing firms by taking account the endogenous choice of R&D. We first examine the determinants of R&D activity and find that exporting activity contributes positively to plants' R&D activity, while multinational corporate do not have a higher R&D propensity. The simultaneous estimates on the interrelation of R&D, productivity, and export show that R&D has a positive impact on both productivity and exports, suggesting the importance of R&D to Indonesian economic growth. It suggests also a two-way causality between productivity and exports, implying the coexistence of self-selection and learning-by-exporting effects in Indonesian manufacturing sector.

Keywords: R&D; Productivity; Export; Indonesia (search for similar items in EconPapers)
JEL-codes: F14 L11 L60 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:29:y:2012:i:2:p:208-216

DOI: 10.1016/j.econmod.2011.09.006

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