The Complementary Role of Exports and R&D Investments as Sources of Productivity Growth

This paper examines two potential channels of knowledge acquisition that underlie firm productivity growth in the Taiwanese electronics industry: participation in the export market and investments in R&D and/or worker training. We focus on the argument that a firm's own investments in R&D are necessary for the firm to assimilate knowledge or expertise gained from foreign contacts and thus are an important component of the process of learning-by-exporting. Firm-level panel data from 1986, 1991, and 1996 is used to investigate a firm's decision to invest in these two activities and to assess the effects of these investments on the firm's future total factor productivity. The empirical model consists of four equations. The firm's decisions to export and invest in R&D and/or worker training are modeled with a bivariate probit model that recognizes the interdependence of the decisions. We then estimate how participation in these investment activities alters the firm's future productivity trajectory while controlling for the potential selection bias introduced by endogenous firm exit. The primary empirical findings are that, on average, firms that export but do not invest in R&D and/or worker training have significantly higher future productivity than firms that do not participate in either activity. In addition, firms that export and invest in R&D and/or worker training have significantly higher future productivity than firms that only export. These findings are consistent with the hypothesis that export experience is an important source of productivity growth for Taiwanese firms and that firm investments in R&D and worker training facilitate their ability to benefit from their exposure to the export market.

Productivity and the Decision to Export: Micro Evidence from Taiwan and South Korea

While there is widespread empirical evidence indicating exporting producers have higher productivity than nonexporters, the mechanisms that generate this pattern are less clear. One view is that exporters acquire knowledge of new production methods, inputs, and product designs from their international contacts, and this learning results in higher productivity for exporters relative to their more insulated domestic counterparts. Alternatively, the higher productivity of exporters may simply reflect the self-selection of more efficient producers into a highly competitive export market. In this paper we use micro data collected in the manufacturing censuses in South Korea and Taiwan to study the linkages between a producer's total factor productivity and choice to participate in the export market. We find differences between the countries in the importance of selection and learning forces. In Taiwan, transitions of firms in and out of the export market reflect systematic variations in productivity as predicted by self-selection models. Firms with higher productivity, ex ante, tend to enter the export market and exporters with low productivity tend to exit. Moreover, in several industries, entry into the export market is followed by relative productivity improvements, a result consistent with learning-by-exporting forces. In South Korea, the evidence of self-selection on the basis of productivity is much weaker. In addition, unlike Taiwan, we find no significant productivity changes following entry or exit from the export market that are consistent with learning from exporting. Comparison of the two countries suggests that in Korea factors other than production efficiency play a more prominent role as determinants determinants of the export decision.

Decomposing firm-product appeal: How important is consumer taste? National Bank of Belgium Working Paper No. 337

We develop and structurally estimate a trade model in order to identify the importance of consumer taste. The model separates taste from quality and productivity (TFPQ) at the firm-product level. Export data by destination countries allow us to identify the level of taste from consumer heterogeneity across destinations. We decompose export revenue into the contribution of taste, quality and costs. We find that taste is very important and explains about 50 % of the variation in export revenue. Productivity (TFPQ) differences between firm-products become more prominent than taste in explaining export success only when the cost elasticity of improving quality is high

A survey of fungi at the University of Wisconsin-Waukesha Field Station

A long-term study of higher fungi and Myxomycetes, primarilyfrom the xeric oak woods, was started in 1978. Collections have been made periodically since then, and recent sampling in conifer plantations indicates that characteristic ectomycorrhizal species of Basidiomycetes are beginning to appear in these communities. To date seven Myxomy-cetes, 22 Ascomycetes, and 107 Basidiomycetes have been identifiedfrom various habitats. These data will be incorporated into a master list of fungi generated from long-term surveys at several additional sites in southeastern Wisconsin

Productivity, output, and failure

노트 : The views expressed herein are those of the authors and not necessarily those of the National Bureau of Economic Research

Factors and affect mobile telephone users to use mobile payment solution

Providing a convenient payment solution to mp3 users is one of the alternatives that can promote legal mp3 downloading. However, before the success of the payment solution can be determined, it is essential to understand whether it would be well-accepted by the users. This paper examines factors that influence the intention to use a mobile payment solution for mp3 downloading among university' students. Drawing from the Technology Acceptance Model, Theory of Planned Behaviour and previous literatures, five factors were hypothesized to influence the intention to use the payment solution, namely perceived usefulness, perceived ease of use, trust, perceived price level, and peer influence. Final year business students at a public university in the southern part of Malaysia were chosen as respondents for this study. Multiple regressions were employed to analyze the data. Two factors were found to have significant effect on the intention to use the payment solution, which were trust and peer influence. Practical implications were proposed and discussed

R&D Investment, Exporting, and Productivity Dynamics

A positive correlation between productivity and export market participation has been well documented in producer micro data. Recent empirical studies and theoretical analyses have emphasized that this may reflect the producer's other investment activities, particularly investments in R&D or new technology, that both raise productivity and increase the payoff to exporting. In this paper we develop a dynamic structural model of a producer's decision to invest in R&D and participate in the export market. The investment decisions depend on the expected future profitability and the fixed and sunk costs incurred with each activity. We estimate the model using plant-level data from the Taiwanese electronics industry and find a complex set of interactions between R&D, exporting, and productivity. The self- selection of high productivity plants is the dominant channel driving participation in the export market and R&D investment. Both R&D and exporting have a positive direct effect on the plant's future productivity which reinforces the selection effect. When modeled as discrete decisions, the productivity effect of R&D is larger, but, because of its higher cost, is undertaken by fewer plants than exporting. The impact of each activity on the net returns to the other are quantitatively unimportant. In model simulations, the endogenous choice of R&D and exporting generates average productivity that is 22.0 percent higher after 10 years than an environment where productivity evolution is not affected by plant investments.

Absence of a Spin Liquid Phase in the Hubbard Model on the Honeycomb Lattice

A spin liquid is a novel quantum state of matter with no conventional order parameter where a finite charge gap exists even though the band theory would predict metallic behavior. Finding a stable spin liquid in two or higher spatial dimensions is one of the most challenging and debated issues in condensed matter physics. Very recently, it has been reported that a model of graphene, i.e., the Hubbard model on the honeycomb lattice, can show a spin liquid ground state in a wide region of the phase diagram, between a semi-metal (SM) and an antiferromagnetic insulator (AFMI). Here, by performing numerically exact quantum Monte Carlo simulations, we extend the previous study to much larger clusters (containing up to 2592 sites), and find, if any, a very weak evidence of this spin liquid region. Instead, our calculations strongly indicate a direct and continuous quantum phase transition between SM and AFMI.Comment: 15 pages with 7 figures and 9 tables including supplementary information, accepted for publication in Scientific Report