The Dynamic Linkages Among Exports, R&D and Productivity

30 Pages Posted: 17 Apr 2015

See all articles by J. A. Máñez

J. A. Máñez

University of Valencia - Faculty of Economics

M. E. Rochina

University of Valencia - Department of Economic Analysis; University College London

J. A. Sanchis

University of Valencia - Department of Applied Economics II

Date Written: April 2015

Abstract

This paper estimates a dynamic model of a firm's decision to export and invest in R&D, in which we allow past export and R&D experience to endogenously affect productivity. In our empirical strategy, we proceed in two steps: in the first step, using as starting point the traditional control approach method to estimate total factor productivity, we consider a more general process driving the law of motion of productivity in which we recognise the potential role that export and R&D experience might have in shaping future firms' productivity, and test whether this assumption holds; in the second step, we estimate a bivariate dynamic model of the firm's decision to invest in R&D and export, in which we analyse the linkages among investing in R&D, exporting and productivity. Using a representative sample of Spanish manufacturing firms for the period 1990–2009, we find that both export and R&D positively affect future productivity, which will drive more firms to self‐select in those activities.

Suggested Citation

Máñez-Castillejo, Juan A. and Rochina-Barrachina, María Engracia and Sanchis-Llopis, Juan Alberto, The Dynamic Linkages Among Exports, R&D and Productivity (April 2015). The World Economy, Vol. 38, Issue 4, pp. 583-612, 2015. Available at SSRN: https://ssrn.com/abstract=2595422 or http://dx.doi.org/10.1111/twec.12160

Juan A. Máñez-Castillejo (Contact Author)

University of Valencia - Faculty of Economics ( email )

Valencia, E-46022
Spain

María Engracia Rochina-Barrachina

University of Valencia - Department of Economic Analysis ( email )

Campus de los Naranjos
46022 Valencia
Spain

University College London

Gower Street
London
United Kingdom

Juan Alberto Sanchis-Llopis

University of Valencia - Department of Applied Economics II ( email )

Edifici Departamental Oriental
Avda. dels Tarongers, S/N
46022 Valencia
Spain

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