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Does Technology Foster Trade? Empirical Evidence for Developed and Developing Countries

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  • Inmaculada Martínez-Zarzoso
  • Laura Márquez-Ramos

Abstract

This paper aims to investigate the effects of technology on international trade flows. In order to do so, the authors use a composite index designed to capture the performance of countries concerning technology and human knowledge as a new explanatory variable in an augmented gravity equation estimated for a sample of 62 developed and developing countries. Results show that geographical factors are always relevant, however geographical distance, being landlocked, technological and social factors seem to be more important for the poorest than for the richest countries. Transport infrastructure and technology can be considered as barriers to trade for those countries with lower endowment levels, therefore investing in these variables will increase the participation of the poorest countries in the world economy. Copyright IAES 2005

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Bibliographic Info

Article provided by International Atlantic Economic Society in its journal Atlantic Economic Journal.

Volume (Year): 33 (2005)
Issue (Month): 1 (March)
Pages: 55-69

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Handle: RePEc:kap:atlecj:v:33:y:2005:i:1:p:55-69

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Keywords: F14; O30;

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  1. Xavier Sala-i-Martin, 1995. "The classical approach to convergence analysis," Economics Working Papers 117, Department of Economics and Business, Universitat Pompeu Fabra.
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Cited by:
  1. repec:pdn:wpaper:31 is not listed on IDEAS
  2. Martinez-Zarzoso Inma & Márquez-Ramos Laura, 2008. "The Effect of Trade Facilitation on Sectoral Trade," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-46, September.
  3. Jan Van Hove, 2008. "The Impact of R&D Spillovers on Export Value: Does the Transmission Channel matter?," Working Papers 2008.3, International Network for Economic Research - INFER.
  4. B. Michael Gilroy & Elmar Lukas & Christian Heimann, 2013. "Technologiestandort Deutschland und internationale Wissensspillover, Welchen Einfluss nehmen auslaendische MNU auf deutsche Exporte?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 233(5-6), pages 575-599, October.
  5. B. Michael Gilroy & Elmar Lukas & Christian Heimann, 2010. "Welchen Einfluss hat die Anwesenheit von ausländischen und multinationalen Unternehmungen auf die deutschen Exporte?," Working Papers CIE 31, University of Paderborn, CIE Center for International Economics.

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