Bettina Peters, Mark Roberts, Van Anh Vuong, 30 March 2019

International markets can provide exporting firms with more opportunities to generate and introduce innovations and capitalise on their investments relative to purely domestic firms. Using German data, this column demonstrates that exporting firms introduce innovations more frequently than domestic firms and have higher economic gains from their innovations. Trade restrictions such as tariffs can affect a firm’s economic activities in foreign markets and also their R&D and innovation activities.

Bruno Merlevede, Angelos Theodorakopoulos, 24 January 2019

Studies of the implications of trade openness for local economies rarely address the domestic supply chain. This column examines whether indirect effects of internationalisation affect the domestic supply chain. Micro-level data for manufacturing firms across 19 EU countries, combined with input-output tables, show that domestic access to intermediate inputs that are also exported leads to higher levels of efficiency.

Márta Bisztray, Miklós Koren, Adam Szeidl, 18 November 2018

Several recent studies have used network methods to explore the spatial spillovers within cities. This column adds to this literature by exploring how the spatial and managerial networks in Budapest influence firms’ import decisions. A peer in the same building with import experience from a specific country has a strong positive effect on the probability that a firm will start importing from that country. These findings point to the importance of social multipliers in facilitating the diffusion of good business practices. 

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