EconPapers    
Economics at your fingertips  
 

Sectoral R&D intensity and Exchange Rate Volatility: A Panel Study on Economies of the OECD

Prashanth Mahagaonkar (), Rainer Schweickert and Aditya Chavali ()

No 2009-056, Jena Economic Research Papers from Friedrich-Schiller-University Jena

Abstract: A recent literature has pointed at potential negative effects of exchange rate volatility on innovation. In this paper, we propose that there may be a direct effect as well as an indirect effect via export activity. We test these hypotheses for sectoral R&D intensities using OECD panel data for manufacturing and services sectors for 14 OECD economies and the years 1987 - 2003. We find that the direct negative effect of volatility is pronounced in manufacturing sector but is dominated by the indirect effect via the export channel. Services do not face any effects of volatility on R&D intensities. While it is not clear which channel dominates our results confirm that there is a negative volatility affect related to openness on a sectoral level.

Keywords: R&D intensity; Innovation; Real Exchange Rate; Volatility; Exports; OECD-Countries (search for similar items in EconPapers)
JEL-codes: E32 F31 O32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ifn, nep-ino and nep-mac
Date: 2009-08-06
References: Add references at CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://www2.wiwi.uni-jena.de/Papers/jerp2009/wp_2009_056.pdf (application/pdf)

Related works:
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:jrp:jrpwrp:2009-056

Access Statistics for this paper

More papers in Jena Economic Research Papers from Friedrich-Schiller-University Jena
Bibliographic data for series maintained by Markus Pasche ().

 
Page updated 2020-01-17
Handle: RePEc:jrp:jrpwrp:2009-056