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Business sector R&D and Australia's manufacturing trade structure

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  • Hans-Jurgen Engelbrecht

Abstract

This study explores the link between R&D intensity and trade performance for Australian manufacturing in 1989--90. Net export, export and import intensity equations are estimated. Net export equations are also corrected for trade imbalance, which has been shown significantly to improve the likelihood of correct predictions of revealed factor abundances. The importance of testing for appropriate functional forms is emphasized. R&D data by industry of product field are clearly preferred over industry of enterprise data. The results reconfirm Australia's comparative disadvantage in R&D intensive manufacturing and the asymmetry in the impact of R&D intensity on net export and export intensity, despite the strong increase in business R&D expenditure and the many policy initiatives adopted during the 1980s aimed at promoting technological capability and increasing non-traditional manufactured exports.

Suggested Citation

  • Hans-Jurgen Engelbrecht, 1998. "Business sector R&D and Australia's manufacturing trade structure," Applied Economics, Taylor & Francis Journals, vol. 30(2), pages 177-187, February.
    • Handle: RePEc:taf:applec:v:30:y:1998:i:2:p:177-187
    DOI: 10.1080/000368498325985
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    1. Jan Fagerberg & Pär Hansson & Lars Lundberg & Arne Melchoir (ed.), 1997. "Technology and International Trade," Books, Edward Elgar Publishing, number 1192.
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    Cited by:

    1. Kishor Sharma & Pemasiri J. Gunawardana, 2012. "The role of price and nonprice factors in predicting Australia's trade performance," Applied Economics, Taylor & Francis Journals, vol. 44(21), pages 2679-2686, July.

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