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How export performance is mediated by innovation, owner characteristics, and location

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  • Han, Luyi
  • Wojan, Timothy R.
  • Tian, Zheng
  • Goetz, Stephan J.

Abstract

We investigate how innovation affects rural nonfarm exports, and thus the U.S. trade deficit. Previous European studies indicate a positive link between R&D expenditures, patented innovation, and exports, but no comparable U.S. firm-level research exists. Using data from the Longitudinal Firm Trade Transactions Database and Annual Business Survey, we examine the relationship between innovation and exports for the United States. Employing a two-stage selection model to address endogeneity concerns, our findings suggest a significant connection between innovation and export. The study contributes to understanding the pivotal role of rural nonfarm exports and highlights policy implications for both trade and rural innovation.

Suggested Citation

  • Han, Luyi & Wojan, Timothy R. & Tian, Zheng & Goetz, Stephan J., 2024. "How export performance is mediated by innovation, owner characteristics, and location," Economics Letters, Elsevier, vol. 237(C).
    • Handle: RePEc:eee:ecolet:v:237:y:2024:i:c:s016517652400140x
    DOI: 10.1016/j.econlet.2024.111657
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    References listed on IDEAS

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    Keywords

    U.S. Firm; Export; Innovation;
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