FDI and Innovation as Drivers of Export Behaviour: Firm-level Evidence from East Asia
Wignaraja, Ganeshan (2008). FDI and Innovation as Drivers of Export Behaviour: Firm-level Evidence from East Asia. UNU-MERIT.
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Author Wignaraja, Ganeshan Title FDI and Innovation as Drivers of Export Behaviour: Firm-level Evidence from East Asia Publication Date 2008 Publisher UNU-MERIT Abstract This paper examines the links between ownership, innovation and exporting in electronics firms in three late industrializing East Asian countries (China, Thailand and the Philippines) drawing on recent developments in applied international trade and innovation and learning. Technology-based approaches to trade offer a plausible explanation for firm-level exporting behavior. The econometric results (using probit) confirm the importance of foreign ownership and innovation in increasing the probability of exporting in electronics. Higher levels of skills, managers’ education and capital also matter in China as well as accumulated experience in Thailand. Furthermore, a technology index composed of technical functions performed by firms emerges as a more robust indicator of innovation than the R&D to sales ratio. Accordingly, technological effort in electronics in these countries mostly focuses on assimilating and using imported technologies rather than formal R&D by specialized engineers. Keyword Foreign direct investment
Innovation
Technological capabilities
R&D
Firm-level exports
Electronics
East Asia
China
Thailand and the PhilippinesJEL F23
O31
O32
L63
O57Copyright Holder UNU-MERIT Copyright Year 2008 ISSN 1871-9872 -
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