Capacity Constraints, Exports and R&D: An Empirical Analysis with Data of Spanish Manufacturing Firms
DOI:
https://doi.org/10.25115/eea.v35i1.2441Keywords:
Export, R&D, Capacity Constraints, Bivariate Probit.Abstract
Most of the new models based on firm heterogeneity assume that production is completely flexible and do not take into account the critical role of capacity constraints in firm’s strategic decisions. However, it seems clear that capacity-constrained firms cannot freely increase production. By using data drawn from the Encuesta Sobre Estrategias Empresariales (ESEE) about Spanish manufacturing firms, this article applies a bivariate probit model to empirically estimate the effect of physical capacity constraints in the firm’s joint decision to export and invest in R&D. The main result of the article reveals that firms facing capacity constraints are less prone to engage in these strategies.Downloads
References
AHN, J. y MCQUOID, A.F. (2012). “Capacity Constrained Exporters: Micro Evidence and Macro Implications”. Economic Research Working Paper Series 11-2012, Florida International University. http://digitalcommons.fiu.edu/cgi/viewcontent.cgi?article= 1001&context=economics_wps. [Último acceso: Septiembre de 2016].
BERNARD, A.B.; EATON, J.; JENSEN, J.B. y KORTUM, S. (2003). “Plants and Productivity in International Trade”. American Economic Review, 93(4), pp. 1268-1290.
BLUM, B.S.; CLARO, S. y HORSTMANN, I.J. (2013). “Occasional and perennial exporters”. Journal of International Economics, 90, pp. 64-75.
CRESPO, A. y MUÑOZ-SEPÚLVEDA, J.A. (2015). “The role of physical and financial constraints in export dynamics”. Economics Working Papers MWP 2015/17, European University Institute.
GREEN, W.H. (2011). “Econometric Analysis” (7th International Edition). Pearson Education.
HELPMAN, E.; MELITZ, M.J. y YEAPLE, S.R. (2004). “Export Versus FDI with Heterogeneous Firms”. American Economic Review, 94(1), pp. 300-316.
HEWITT-DUNDAS, N. (2006). “Resource and Capability Constraints to Innovation in Small and Large Plants”. Small Bussiness Economics, 26, pp. 257-277.
LEVINSOHN, J. y PETRIN, A. (2003). “Estimating production functions using inputs to control for unobservables”. Review of Economic Studies, 70(2), pp. 317-342.
LILEEVA, A. y TREFLER, D. (2010). “Improved Access to Foreign Markets Raises Plant-Level Productivity…For Some Plants”. Quarterly Journal of Economics, 125(3), pp. 1051-1099.
MELITZ, M.J. (2003). “The impact of trade on intra-industry reallocations and aggregate industry productivity”. Econometrica, 71, pp. 1695-1725.
MELITZ, M.J. y OTTAVIANO, G.I.P. (2008). “Market Size, Trade, and Productivity”. Review of Economic Studies, 75(1), pp. 295-316.
MUÑOZ-SEPÚLVEDA, J.A. (2014). “Residual exports and domestic demand: an empirical analysis”. MPRA Working Papers 54799. https://mpra.ub.uni-muenchen.de/ 54799/1/MPRA_paper_54799.pdf. [Último acceso: Septiembre de 2016].
OUM, S.; NARJOKO, D. y HARVIE, C. (2014). “Constraints, Determinants of SME Innovation, and the Role of Government Support”. ERIA Discussion Paper Series no. 2014-10.
http://www.eria.org/ERIA-DP-2014-10.pdf. [Último acceso: Septiembre de 2016].
SMOLNY, W. (2003). “Determinants of innovation behavior and investment estimates for west-german manufacturing firms”. Economics of Innovation and New Technology, 12(5), pp. 449-463.
SODERBERY, A. (2014). “Market size, structure, and access: Trade dynamics with capacity constraints”. European Economic Review, 70, pp. 276-298.
