Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161456
Authors: 
Trinh, Long Q.
Year of Publication: 
2016
Series/Report no.: 
ADBI Working Paper Series 580
Abstract: 
This paper examines the bidirectional causality between innovation and internationalization in the context of developing countries. Using a dynamic bivariate probit model and adopting a broad definition of internationalization, this paper analyzes these issues using a panel dataset of small and medium-sized enterprises in Viet Nam. The results show a high persistence in process and product innovations and internationalization decisions. Furthermore, we find that, for non-micro firms, past internationalization has a positive effect on process innovation, but past process innovation does not have a significant effect on the internationalization decision. For this group of firms, we also find signs of cross-dependence between process innovation and the internationalization decision. Our results, however, do not show dynamic interdependence between internationalization and product innovation.
Subjects: 
SME internationalization and innovation
process innovation
cross-dependence
product innovation
JEL: 
L20
L25
O31
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/3.0/igo/
Document Type: 
Working Paper

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