New stuff or better ways: what matters to access international markets?

Adriana Peluffo, Inmaculada Martínez-Zarzoso and Ernesto Silva

Journal of Applied Economics, 2020, vol. 23, issue 1, 656-678

Abstract: The connection of innovation and exporting is of major interest to developing countries aiming to achieve higher growth and wellbeing. This study analyzes whether different types of innovation affect export behavior at the firm level for an unbalanced panel of Uruguayan manufacturing firms. Logistic regression and matching with difference-in-differences (MDID) techniques are applied to data from 2003 to 2012. Unlike other studies, productivity-enhancing (or cost-reducing) innovation shows a stronger correlation with exporting than product innovation, indicating that price competition is more important than quality competition for Uruguayan products in foreign markets. Furthermore, using MDID we establish a direct causal link from innovation to exporting. Finally, the causal effect of innovation on exporting is mainly found for exports to countries belonging to the regional trade agreement Mercosur. Overall, the findings indicate that active innovation policies along with other export promotion policies would help promote firms’ participation in foreign markets.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/15140326.2020.1816120 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: New Stuff or Better Ways: What Matters to Access International Markets? (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:recsxx:v:23:y:2020:i:1:p:656-678

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/recs20

DOI: 10.1080/15140326.2020.1816120

Access Statistics for this article

Journal of Applied Economics is currently edited by Jorge M. Streb

More articles in Journal of Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().