R&D, productivity, and exports: Plant-level evidence from Indonesia

Chih Hai Yang, Ying Hui Chen

Research output: Contribution to journalArticlepeer-review

40 Scopus citations


This study examines the relation between productivity and exports in Indonesian manufacturing firms by taking account the endogenous choice of R&D. We first examine the determinants of R&D activity and find that exporting activity contributes positively to plants' R&D activity, while multinational corporate do not have a higher R&D propensity. The simultaneous estimates on the interrelation of R&D, productivity, and export show that R&D has a positive impact on both productivity and exports, suggesting the importance of R&D to Indonesian economic growth. It suggests also a two-way causality between productivity and exports, implying the coexistence of self-selection and learning-by-exporting effects in Indonesian manufacturing sector.

Original languageEnglish
Pages (from-to)208-216
Number of pages9
JournalEconomic Modelling
Issue number2
StatePublished - Mar 2012


  • Export
  • Indonesia
  • Productivity
  • RandD


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