RELATIONSHIP BETWEEN R&D INVESTMENT AND HIGH-TECH EXPORTS: EMPIRICAL STUDY FROM PAKISTAN

Muhammad Usman

Abstract


The aim of this study is to explore the impact of R&D investment on high tech exports in Pakistan - a developing and emerging economy. To testify such relationship, data are collected from firms’ financial statements, World Bank data base and State Bank of Pakistan data source. Time span of study is consisting of 20 years from 1995 to 2014. By using ordinary least square with robust standard error, along with several macroeconomic control variables, we found significantly positive relationship between R&D investment and high the exports. According to the product life cycle theory of international trade, innovative activities help to create competitive advantage which is essential for competing in worldwide markets. The empirical results show that R&D investment creates new products, which can attract foreign customers and creating export opportunities.

Keywords


R&D Investment, High Tech Exports, Pakistan

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DOI: https://doi.org/10.24212/2179-3565.2019v10i1p110-123

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