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Importing, Exporting and Innovation in Developing Countries / Seker, Murat
World Bank Open Knowledge Repository (formerly "World Bank E-Library Publications") Available online
View online- Format:
- Book
- Government document
- Author/Creator:
- Seker, Murat
- Series:
- Policy research working papers.
- World Bank e-Library.
- Language:
- English
- Subjects (All):
- Certificate.
- E-Business.
- Economic Theory & Research.
- Emerging Markets.
- Enterprise surveys.
- Finance and Financial Sector Development.
- Fixed cost.
- Foreign inputs.
- Globalization.
- Innovation.
- International trade.
- Labor Policies.
- Macroeconomics and Economic Growth.
- Manufacturing.
- Microfinance.
- Performance measures.
- Private sector.
- Private sector development.
- Productivity.
- R&d.
- Result.
- Results.
- Sensitivity analysis.
- Social Protections and Labor.
- Technological innovation.
- Technological innovations.
- Technology transfer.
- Web.
- Local Subjects:
- Certificate.
- E-Business.
- Economic Theory & Research.
- Emerging Markets.
- Enterprise surveys.
- Finance and Financial Sector Development.
- Fixed cost.
- Foreign inputs.
- Globalization.
- Innovation.
- International trade.
- Labor Policies.
- Macroeconomics and Economic Growth.
- Manufacturing.
- Microfinance.
- Performance measures.
- Private sector.
- Private sector development.
- Productivity.
- R&d.
- Result.
- Results.
- Sensitivity analysis.
- Social Protections and Labor.
- Technological innovation.
- Technological innovations.
- Technology transfer.
- Web.
- Physical Description:
- 1 online resource (37 pages)
- Place of Publication:
- Washington, D.C., The World Bank, 2009
- System Details:
- data file
- Summary:
- Recent studies have shown that not only exporters but also importers perform better than firms that do not trade. Using a detailed firm level dataset from 43 developing countries, I show that there are persistent differences in evolution of firms when they are grouped according to their trade orientation as: two-way traders (both importing and exporting), only exporters, only importers, and non-traders. Extending the existing models of firm evolution in open economies by incorporating importing decision, I show that: i) globally engaged firms are larger, more productive, and grow faster than non-traders; ii) two-way traders are the fastest growing and most innovative group who are followed by only-exporters; iii) estimating export premium without controlling for import status is likely to overestimate the actual value by capturing the import premium; and iv) R&D investment contributes to growth of traders significantly more than to non-traders. Finally I show the robustness of the findings by providing evidence from the panel data constructed from the original dataset and controlling for variables that are likely to affect firm growth.
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