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Firm R&D, Absorptive Capacity and Learning by Exporting: Firm‐level Evidence from China
Author(s) -
Dai Mi,
Yu Miaojie
Publication year - 2013
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12014
Subject(s) - absorptive capacity , productivity , china , monetary economics , economics , investment (military) , capacity utilization , industrial organization , microeconomics , macroeconomics , politics , political science , law
Abstract The absorptive capacity of firms developed through R&D promotes learning by exporting. In this paper, we estimate the instantaneous and long‐run productivity effects of exporting on the universe of Chinese manufacturing firms. We find that exporting has very different productivity effects for firms with different pre‐export R&D status. It has large and lasting productivity effects for firms with pre‐export R&D, while it has little effects for firms without pre‐export R&D. Furthermore, the effect of exporting increases with the number of years of pre‐export R&D investment.