The Contribution of Manufactured Exports and R&D to Industrial Growth in Jordan
DOI:
https://doi.org/10.35516/jjes.v9i1.252Keywords:
Manufactured Exports, R&D, Generalized Cobb-Douglass Function, Seemingly Unrelated Regression, Industrial GrowthAbstract
This paper examines the impact of exports and R&D on the industrial growth in Jordan for the sample period 2009-2017, using micro-level panel data (2-Digit SIC). It uses the generalized Cobb-Douglass Production function. Industrial growth is assumed to be a function of industrial exports, spending on R and D, consumption from intermediate goods, consumption from intermediate services, and employees' compensations. Two seemingly unrelated Regression models have been estimated. The first model is based on dividing industries according to the ratio of export-to-production (Greater than 20, 10-20%, and less than 10%), while the second model is based on the ratio of spending on R&D to revenue (Greater than 1.25%, 0.5-1.25%, less than 0.5. The results reveal evidence supporting the export-led growth in the industries which export 10 percent or more of their production. On the other hand, R & D provided no significant impact on industrial growth in all equations, except in the industries where the percent of R & D varies between 0.5-1.25%, reflecting that most industries invest little in research and R&D.
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