How export performance is mediated by innovation, owner characteristics, and location

Luyi Han, Timothy Wojan, Zheng Tian and Stephan J. Goetz

Economics Letters, 2024, vol. 237, issue C

Abstract: We investigate how innovation affects rural nonfarm exports, and thus the U.S. trade deficit. Previous European studies indicate a positive link between R&D expenditures, patented innovation, and exports, but no comparable U.S. firm-level research exists. Using data from the Longitudinal Firm Trade Transactions Database and Annual Business Survey, we examine the relationship between innovation and exports for the United States. Employing a two-stage selection model to address endogeneity concerns, our findings suggest a significant connection between innovation and export. The study contributes to understanding the pivotal role of rural nonfarm exports and highlights policy implications for both trade and rural innovation.

Keywords: U.S. Firm; Export; Innovation (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:237:y:2024:i:c:s016517652400140x

DOI: 10.1016/j.econlet.2024.111657

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