Kiel Working Papers, Kiel Institute for World Economics
No 1620:
Linkages between Technology Choice and Exporting: Evidence from Argentina
Gabriela Schmidt and Natalia Trofimenko
Abstract: This paper aids our understanding of the link between
innovation and exporting behavior by detailing how firms may purposefully
decide on the source country for the imported innovation and the market
that they ultimately serve. We argue that firms who invest in the
state-of-the-art technologies pursue a more aggressive exporting strategy
and test this hypothesis with firm-level data from Argentina. The empirical
results, based on the data from 1402 Argentinean firms over the period
1998-2001, suggest the existence of positive and highly significant effect
of spending on new technology on the export performance. The magnitude of
the effect is large: a one percent increase in spending on technology
increases exports by 30 percent. The effect is even larger if the
technology is sourced from one of the world’s leaders: a one percent
increase in spending on technology imported from leaders increases exports
by 176 percent, whereas a one percent increase in spending on technology
imported from non-leaders increases exports by about 28 percent
Keywords: Technology Choice, Exporting, Productivity, Imports of Technology; (follow links to similar papers)
JEL-Codes: O3,; F1,; L; (follow links to similar papers)
34 pages, April 2010
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