Assessing the Effects of International Trade on Private R&D Expenditures in the Food Processing Sector |
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Authors: | Pascal L Ghazalian |
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Affiliation: | Department of Economics , University of Lethbridge , Alberta , Canada |
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Abstract: | This study empirically investigates the effects of imports and exports on private research and development (R&D) expenditures in the food processing sector. An analytical framework discussing the various effects of international trade on R&D activities is presented. This is followed by an empirical analysis that uses a dynamic empirical specification for current R&D expenditures and for a cumulative measure of R&D stock. The empirical investigation is applied to a panel dataset covering Organization for Economic Cooperation and Development's countries. The empirical results show that increases in import intensity levels induce reductions in private R&D expenditures whereas increases in export intensity levels promote larger private R&D expenditures. These outcomes imply that the R&D-enhancing effects of exports are countered by the R&D-reducing effects of imports. |
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Keywords: | Food processing sector innovation OECD research and development (R& D) international trade |
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