Assessing the Effects of International Trade on Private R&D Expenditures in the Food Processing Sector

Pascal Ghazalian

Industry and Innovation, 2012, vol. 19, issue 4, 349-369

Abstract: This study empirically investigates the effects of imports and exports on private research and development (R&D) expenditures in the food processing sector. An analytical framework discussing the various effects of international trade on R&D activities is presented. This is followed by an empirical analysis that uses a dynamic empirical specification for current R&D expenditures and for a cumulative measure of R&D stock. The empirical investigation is applied to a panel dataset covering Organization for Economic Cooperation and Development's countries. The empirical results show that increases in import intensity levels induce reductions in private R&D expenditures whereas increases in export intensity levels promote larger private R&D expenditures. These outcomes imply that the R&D-enhancing effects of exports are countered by the R&D-reducing effects of imports.

Date: 2012
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DOI: 10.1080/13662716.2012.694679

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