R&D Investment, Exporting, And Productivity Dynamic Empirical Study

Heterogeneous Firms Trade Theory will study international trade from the macro-national and industrial level shift to analyze the behavior of micro-firms, from the micro perspective of firms’ behavior to analysis to effect of firms’ decisions on international trade interests. Based on the year 2001 to 2007 industry-wide balanced panel data from China’s industrial enterprises in the micro database, we build up the dynamic econometric model to analyze the intertemporal interactions of the behaviors of R&D and export, and the impact on firms’ future productivity. The empirical results show that, due to the presence of sunk costs of the initial investments, firms’ previous behaviors’ decisions sustained significantly promoting effect on the probability of the behavior of the current firms’ decisions in the sample period. That is, there is a significant role of the former R&D (or export) in promoting the R&D(or export) in the current period; there is a significant role in mutual promoting effect among R&D and export behaviors, and the role of the relationship is dynamic and continuing in a certain continuous time, productivity, age, capital scale and other firms’ characteristics are important factors; Firms can choose endogenous behaviors to influence their own productivity through, firms’ R&D and export activities do a significant role in promoting firms’ future productivity.After the fourth plenary session of the eighteenth, China’s reform and opening up has entered a new stage, China’s economic restructuring has entered a crucial stage, promote the export product quality upgrading, change the trade structure, promote "innovation-driven strategy" steady and rapid implementation, trading environment has been considerable improved. Innovation is the source of power to support sustainable development of enterprises. R&D and export are two important ways to support firms continue to move forward, to improve international competitiveness, and the roles of the two are complementary. R&D is an important way to promote the technological upgrading of firms and product innovation, and is the source of power to support the long-term development of companies. Through successful R&D activities, firms develop new technologies and products to promote the continuous improvement of productivity and to be the first to capture the market, export enterprises enter the international market to broaden the product demand, improve product sales and to improve the R&D investment rate of return. With the Reducing the cost of trade and opening export markets from liberalization of trade, positive economic effect for firms is largely dependent on firms’ productivity, R&D, export and the relationship between the three. Therefore, understanding the behaviors of micro-enterprises to realize the impact of trade on the interest of the State is very important and necessary. To accelerate the transformation of China trade development, promoting innovation-driven development of strategies, improve quality of export products and to enhance the international competitiveness of enterprises, it has a profound and realistic inspiration.