Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/123956 
Year of Publication: 
2013
Series/Report no.: 
53rd Congress of the European Regional Science Association: "Regional Integration: Europe, the Mediterranean and the World Economy", 27-31 August 2013, Palermo, Italy
Publisher: 
European Regional Science Association (ERSA), Louvain-la-Neuve
Abstract: 
It is well known that exporters are productive firms. But the source of their productivity is left unexplained. This paper aims to endogenize the productivity heterogeneity of exporting firms by incorporating innovation in a structural model framework. In doing so, we close the gap between the innovation-productivity and productivity-export literature. Two waves of Swedish Community Innovation Survey (CIS) are merged. This allows for a dynamic setup that takes into account the proper lags from innovation input to innovation output and also from innovation output to productivity and export. The applied framework corrects for selectivity, simultaneity, and potential endogeneity biases. The main findings highlight that exporters are productive firms with innovation output in the past, which in turn was driven by prior R&D and other innovation activity investments.
JEL: 
C31
L60
O31
Document Type: 
Conference Paper

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