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R&D, export and productivity: testing the Bustos model on Danish data

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  • Mogens Dilling-Hansen
  • Valdemar Smith

Abstract

In this article, a unique data set for Danish manufacturing firms has been used to analyse the interplay between export, R&D investments and productivity. In addition to traditional tests, a nonparametric test for differences in stochastic distributions gives evidence that the productivity distribution of firms that export and engage in R&D dominates the productivity distribution of firms that are exporters without engaging in R&D. Furthermore, the productivity distribution of the latter group of firms dominates that of firms who are neither R&D-active nor exporters. This conclusion applies to the years before, under and after the economic downward spiral in the world economy, i.e. 2007 to 2010. Overall, this result confirms the hypothesis of Bustos (2011) for Argentina, and for the results for German firms, see Wagner (2012b) and Vogel and Wagner (2012). However, for 2009 the findings are less clear, mainly due to the relative productivity cutback, which some exporting firms faced at the beginning of the downturn in the world economy.

Suggested Citation

  • Mogens Dilling-Hansen & Valdemar Smith, 2014. "R&D, export and productivity: testing the Bustos model on Danish data," Applied Economics Letters, Taylor & Francis Journals, vol. 21(11), pages 733-737, July.
    • Handle: RePEc:taf:apeclt:v:21:y:2014:i:11:p:733-737
    DOI: 10.1080/13504851.2014.884695
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    References listed on IDEAS

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    1. Bernard, Andrew B. & Bradford Jensen, J., 1999. "Exceptional exporter performance: cause, effect, or both?," Journal of International Economics, Elsevier, vol. 47(1), pages 1-25, February.
    2. Joachim Wagner, 2016. "Exports and Productivity: A Survey of the Evidence from Firm Level Data," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 1, pages 3-41, World Scientific Publishing Co. Pte. Ltd..
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    4. Alexander Vogel & Joachim Wagner, 2021. "Exports, R&D and Productivity in German Business Services Firms: A Test of the Bustos-model," World Scientific Book Chapters, in: Joachim Wagner (ed.), MICROECONOMETRIC STUDIES OF FIRMS’ IMPORTS AND EXPORTS Advanced Methods of Analysis and Evidence from German Enterprises, chapter 16, pages 287-293, World Scientific Publishing Co. Pte. Ltd..
    5. Paula Bustos, 2011. "Trade Liberalization, Exports, and Technology Upgrading: Evidence on the Impact of MERCOSUR on Argentinian Firms," American Economic Review, American Economic Association, vol. 101(1), pages 304-340, February.
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    Cited by:

    1. Stefano Costa & Federico Sallusti & Claudio Vicarelli & Davide Zurlo, 2022. "Tech on the ROC: export threshold and technology adoption interacted," Small Business Economics, Springer, vol. 59(4), pages 1593-1611, December.
    2. Joachim Wagner, 2015. "Exports, R&D and Productivity: A test of the Bustos-model with enterprise data from France, Italy and Spain," Economics Bulletin, AccessEcon, vol. 35(1), pages 716-719.
    3. Mogens Dilling-Hansen & Valdemar Smith, 2015. "R&D, export and productivity in business services firms: testing the Bustos model," Applied Economics Letters, Taylor & Francis Journals, vol. 22(16), pages 1309-1314, November.

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