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their innovation activities and the use of imported inputs. A static and a dynamic
model have been estimated to evaluate the effect of innovation and importing
activities on the intensive and extensive margin of trade. Also the endogeneity of the
productivity and innovation variables is taken into account in the analysis. The
main findings indicate that both innovation and importing activities are relevant in
determining not only the decision to export (extensive margin), but also the average
amount exported (intensive margin) in Egypt.