This paper adds new empirical evidence on the mutual relationships between credit constraints, total factor productivity, Research and Development (R&D) investments and exporting, by jointly considering them in a simultaneous equation framework. Our empirical analysis focuses on a large sample of manufacturing firms from France, Germany, Italy and Spain. Our results confirm the well-known mutual positive correlation among exporting, R&D and firm's productivity. They also show the existence of a mutual relationship between exporting, productivity and credit constraints: exporters and high productivity firms are less likely to be credit constrained, while better access to credit is associated with larger productivity and a higher probability of exporting. By contrast, we find no significant relation between investing in R&D and the probability to be credit constrained, conditional on exporting. This suggests that efficiency-improving strategies, mediated by the existence of credit constraints, are at the core of firm growth achieved through exporting and innovation.

R&D investments, financing constraints, exporting and productivity / C. Altomonte, S. Gamba, M.L. Mancusi, A. Vezzulli. - In: ECONOMICS OF INNOVATION AND NEW TECHNOLOGY. - ISSN 1043-8599. - 25:3(2016), pp. 283-303. [10.1080/10438599.2015.1076203]

R&D investments, financing constraints, exporting and productivity

S. Gamba;
2016

Abstract

This paper adds new empirical evidence on the mutual relationships between credit constraints, total factor productivity, Research and Development (R&D) investments and exporting, by jointly considering them in a simultaneous equation framework. Our empirical analysis focuses on a large sample of manufacturing firms from France, Germany, Italy and Spain. Our results confirm the well-known mutual positive correlation among exporting, R&D and firm's productivity. They also show the existence of a mutual relationship between exporting, productivity and credit constraints: exporters and high productivity firms are less likely to be credit constrained, while better access to credit is associated with larger productivity and a higher probability of exporting. By contrast, we find no significant relation between investing in R&D and the probability to be credit constrained, conditional on exporting. This suggests that efficiency-improving strategies, mediated by the existence of credit constraints, are at the core of firm growth achieved through exporting and innovation.
credit constraints; margins of export; R&D investments; total factor productivity
Settore SECS-P/01 - Economia Politica
Settore SECS-P/03 - Scienza delle Finanze
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/2434/812388
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