The United States is Australia's second largest trading partner and largest single source of foreign investment. The trading relations between the United States and Australia's commercial partners in East Asia are also of fundamental importance to Australia's trade and investment prospects....

In this paper we have estimated a behavioural equation for R&D investment. We assess the impact of liquidity constraints and capabilities, measured respectively as internal cash flow and distance from the technological frontier. Our estimation is performed on an industry level panel covering...