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The Role of Technology Diffusion on Industrial Export: Empirical Analysis of Iranian Economy

16 Pages Posted: 31 Dec 2011  

Aboulfazl Shahabadi

Bu-Ali Sina University - Faculty of Economics and Social Science

Mohammad Rahimi

Bu-Ali Sina University - Faculty of Economics and Social Science

Shilan Sheykhaghaee

affiliation not provided to SSRN

Date Written: March 1, 2011

Abstract

Recent theories of international economics deal with oriented innovation in reaction to economic incentives as a main engine of technological progress and competitiveness. The aim of this study is to investigate the role of real variables such as stock accumulation of domestic R&D activities and stock accumulation of foreign R&D activities (via the import of goods and inflow of FDI), and also the price variables such as real exchange rate and inflation rate on Iran’s economy industrial export during the period 1970-2005. The estimated results show that the stock accumulation of domestic R&D activities and stock accumulation of foreign R&D activities (spillover from import channel of goods) have positive but insignificant effect on industrial export and the stock accumulation of foreign R&D activities (spillover from inflow of FDI) has positive and significant effect on industrial export. Also real exchange rate has a positive but insignificant effect on industrial export; while the coefficient of inflation rate indicated that the rate of inflation has negative and significant effect on industrial export in the Iranian economy.

Keywords: Industrial Export, R&D, Foreign Direct Investment, Foreign trade, Technology Diffusion

JEL Classification: F10, O30, C22

Suggested Citation

Shahabadi, Aboulfazl and Rahimi, Mohammad and Sheykhaghaee, Shilan, The Role of Technology Diffusion on Industrial Export: Empirical Analysis of Iranian Economy (March 1, 2011). Available at SSRN: https://ssrn.com/abstract=1977841 or http://dx.doi.org/10.2139/ssrn.1977841

Aboulfazl Shahabadi (Contact Author)

Bu-Ali Sina University - Faculty of Economics and Social Science ( email )

Hamedan
Iran

Mohammad Rahimi

Bu-Ali Sina University - Faculty of Economics and Social Science ( email )

Hamedan
Iran

Shilan Sheykhaghaee

affiliation not provided to SSRN ( email )

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