R&D and export: An empirical analysis of Chinese manufacturing firms

Abstract Synthesizing the paradigms of neotechnology theory of trade and the economics of technological innovation, this study analyzes the role of R&D in explaining export propensity and export growth based on a large data set of manufacturing firms in China. The results of logistic and simultaneous analyses show that the influence of R&D on both export propensity and growth are significant and positive. In addition, the results also confirmed reciprocal relationships between R&D and export in the simultaneous tests and that other strategic variables such as profitability, capital intensity and relative firm size are at work affecting export propensity and growth in different directions. The study concludes that the empirical findings provide further evidence to support the neotechnology theory of trade in the context of China.

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