Skip to main content

Business expenditures on R&D and trade performances in Australia: is there a link?

Buy Article:

$51.63 plus tax (Refund Policy)

Abstract:

This article, empirically examines the dynamic causal link between business research and development (R&D) expenditures and trade performance in Australia. Based on cointegration and error-correction modelling, Granger causality tests, variance decomposition and impulse response functions are used for this purpose. The results show that a long-run relationship exists between the trade variables and R&D expenditure and a unidirectional causality run from R&D expenditure to exports, imports and net exports. Further, the variance decomposition and impulse response functions confirm that, a significant portion of fluctuations in the trade variables beyond the sample period is explained by R&D expenditure. Therefore, government policies that lift expenditures on business R&D are shown to contribute to the narrowing of Australia's chronic trade deficits.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840601007302

Affiliations: School of Economics & Finance, Curtin Business School (CBS), Curtin University of Technology, Perth, WA 6845, Australia

Publication date: February 1, 2009

More about this publication?
routledg/raef/2009/00000041/00000003/art00007
dcterms_title,dcterms_description,pub_keyword
6
5
20
40
5

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more