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Direction of Causality in Innovation-Exporting Linkage: Evidence on Korean Manufacturing

Author

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  • Chin Hee HAHN

    (Chin Hee HAHN Kyungwon University)

  • Chang-Gyun PARK

    (Chang-Gyun PARK Chung-Ang University)

Abstract

This paper examines various possible bi-directional causal relationships among exporting, innovation, and productivity utilizing plant-level data on Korean manufacturing. Based on both propensity score matching technique and three-variable panel VAR estimation, we find a significantly positive effect of exporting on new product introduction. The effect for the other direction of causality is estimated to be positive but not significant. Panel VAR estimation results suggest that plant productivity has a significantly positive effect on both exporting and new product introduction.

Suggested Citation

  • Chin Hee HAHN & Chang-Gyun PARK, 2012. "Direction of Causality in Innovation-Exporting Linkage: Evidence on Korean Manufacturing," Working Papers DP-2012-07, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2012-07
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    References listed on IDEAS

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    Cited by:

    1. Mohammad Movahedi & Olivier Gaussens, 2013. "Les effets de l’exportation sur l’innovation et la productivité : Analyse empirique sur un échantillon de PMI," Economics Working Paper Archive (University of Rennes & University of Caen) 201307, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    2. Trinh, Long, 2015. "Dynamics of innovation and internationalization among Vietnamese SMEs," MPRA Paper 68308, University Library of Munich, Germany, revised 26 Nov 2015.
    3. Barasa, L. & Kinyanjui, B. & Knoben, Joris & Kimuyu, P. & Vermeulen, P.A.M., 2016. "Export and Innovation in Sub-Saharan Africa," Other publications TiSEM 5243a1d6-7a6a-4871-b4f2-7, Tilburg University, School of Economics and Management.
    4. Trinh, Long Q., 2016. "Dynamics of Innovation and Internationalization among Small and Medium-Sized Enterprises in Viet Nam," ADBI Working Papers 580, Asian Development Bank Institute.
    5. Maja Bašiæ & Mile Bošnjak & Ivan Novak, 2023. "Productivity shocks and industry specific effects on export and internationalisation: VAR approach," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 41(1), pages 113-156.
    6. Movahedi, Mohammad, 2013. "Le commerce international, l’adoption de l’innovation et le choix de l’entrée-sortie à l’exportation des firmes [International trade, innovation adoption and export entry-exit choice of the firms]," MPRA Paper 44268, University Library of Munich, Germany, revised 01 Jan 2014.

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