SİGEZE Ç. , Balli E. , TRAŞ M. F.

13th International Scientific Conference on Economic and Social Development (ESD), Barcelona, Spain, 14 - 16 April 2016, pp.605-610 identifier

  • Publication Type: Conference Paper / Full Text
  • Volume:
  • City: Barcelona
  • Country: Spain
  • Page Numbers: pp.605-610


The relationship between Research and Development (R&D) decision has been of great interest in the firm level studies. Expanding R&D expenditure within firms is regarded as one of the main strategies to deal with globalization challenge. Theoretical and empirical studies link a positive relationship between R&D ability and export capability of firms. This paper focuses on two types of relationships depicted in literature. In the first place we attempt to examine how the firm's R&D decision and export decision are determined based on the firm's specific characteristics, namely labor productivity, firm size, age, skill, capital intensity, and foreign ownership of the company. Secondly, we consider the interaction between R&D and export decisions for Turkish manufacturing firms, using World Bank Enterprise Survey, conducted in a cross-section study of 2013 through face to face interviews. To test the aforementioned relationships, we utilize Bivariate Probit estimation approach. This method is particularly useful for taking the consideration of two-dimensional nature of the data. Our main findings present that R&D and the firm's export decision are positively correlated in Turkey. Besides government subsidies increase the probability of firm's export decision as expected. Furthermore, both export and R&D decisions differ on the basis of firm characteristics.