Exports, Innovation and Production Growth: A Dynamic Heterogeneous Firm Model with Learning and Entry Costs
نویسنده
چکیده
In this paper, I analyze a dynamic model of a firm’s joint decisions to export and innovate, allowing both decisions to affect the firm’s production in accordance with selfselection and learning-by-exporting theories of firm-level export and production dynamics. I calibrate the model using Chilean manufacturing plant data from 2005 to 2007 and find that self-selection and learning-by-exporting alone cannot adequately explain the observed cross-sectional relationship between firm level exports and production, favoring instead a model that requires both mechanisms to work in tandem. Counterfactual policy analysis indicates that the impact of trade liberalization depends on the maturity of the industry, the rate at which liberalization occurs, and the nature of the dominant adjustment mechanism governing firm-level export-production dynamics. JEL Classification: C61; C82; F17; F43; F63; O14; O32.
منابع مشابه
Investigating the Effect of Integrative Capability and Flexible Culture on Firm Performance: Mediating Role of Business Model Innovation and Moderating Role of Firm’s Strategy
It is essential to evaluate the firms’ performance as a strategic process to comprehend the sustainability of each company. Therefore, firms are persistently looking to enhance their performance, in order to succeed in a dynamic and competitive environment. On the other side, through this condition achieving superior performance requires improvement and innovation in the business model to creat...
متن کاملHow Does an Industry Thrive More From Exporting? A Theoretical Analysis of the Learning-by-Exporting Effect with Innovation and Asymmetric Demand
Abstract This paper introduces asymmetric demand into an open-economy model. Domestic industries exhibit different export capabilities, and the export market attaches different preferences to them. My model shows how exports influence the market structure and productivity growth. If an industry exports more, the firms within the industry would face a higher domestic-market but lower export-mark...
متن کاملDeterminant Factors of Absorptive Capacity and Innovation in Iranian Industry’s firms (Focus on Firm Size, Labor Productivity and Value of Production)
The successful economies are ones that have effective system to transform knowledge and technology in economic capacity. They have complex system that is an important sector of their economy. The current approach moving to knowledge based society is attention to R&D activities and high technologies. In this path, industrial companies can have a vital role in creating, developing and applying of...
متن کاملA System Dynamics Approach to Designing Technological Innovation Management Model in Downstream Petrochemical Industries
Special attention to the relative advantages of the economy is the best way toward economic development in every country. Owing to its considerable natural oil and gas resources, Iran has a high potential for the development of these industries. In the value chain process of these God-given resources, a wide diversity of final downstream petrochemical products has a significant charm and scope ...
متن کاملFirm Experimentation in New Markets
An important feature of the data on new exporters is the evolution over time of their export size and exit rate. As the exporting age of firms increases, their average export volumes grow and the exit rate decreases. In particular, we observe cases of new exporters expanding slowly initially, and switching to high levels of exports after some time. I propose a quantitative model of active learn...
متن کامل