R&D investment, exporting, and productivity dynamics

Journal Article (Journal Article)

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. © The Nobel Foundation 2010.

Full Text

Duke Authors

Cited Authors

  • Aw, BY; Roberts, MJ; Xu, DY

Published Date

  • June 1, 2011

Published In

Volume / Issue

  • 101 / 4

Start / End Page

  • 1312 - 1344

International Standard Serial Number (ISSN)

  • 0002-8282

Digital Object Identifier (DOI)

  • 10.1257/aer.101.4.1312

Citation Source

  • Scopus