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Aw, Bee Yan,
Mark J. Roberts, and
Daniel Yi Xu. 2011. "R&D Investment, Exporting, and Productivity Dynamics."
,
101(4): 1312-44.
Show Article Details
DOI: 10.1257/aer.101.4.1312
Abstract:This paper estimates a dynamic structural model of a producer's
decision to invest in R&D and export, allowing both choices to endogenously
affect the future path of productivity. Using plant-level data
for the Taiwanese electronics industry, both activities are found to
have a positive effect on the plant's future productivity. This in turn
drives more plants to self-select into both activities, contributing to
further productivity gains. Simulations of an expansion of the export
market are shown to increase both exporting and R&D investment
and generate a gradual within-plant productivity improvement. (JEL
D24, F14, G31, L63, O31, O33)
Additional links:
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Online Appendix
Authors:
Aw, Bee Yan (PA State U)
Roberts, Mark J. (PA State U)
Xu, Daniel Yi (NYU)
JEL Classifications:
D24: Production; Cost; Capital, Total Factor, and Multifactor Productivity; Capacity
F14: Country and Industry Studies of Trade
G31: Capital Budgeting; Fixed Investment and Inventory Studies; Capacity
L63: Microelectronics; Computers; Communications Equipment
O31: Innovation and Invention: Processes and Incentives
O33: Technological Change: Choices and Consequences; Diffusion Processes
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