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Exports, Product Differentiation and Knowledge Spillovers

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  • Miguel León-Ledesma

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Abstract

Empirical studies on aggregate export behavior have recently emphasized the role played by innovation as the main force driving product differentiation and competitiveness for developed countries. These studies treat foreign innovation as a variable that affects negatively national export shares. We incorporate the impact of foreign innovation in a standard new trade theory model and find that, if knowledge spillovers exist, foreign knowledge accumulation could even have a positive effect on national exports. We then test the model using aggregate export data for a set of 21 OECD economies and find that the foreign stock of knowledge affects exports positively for the less advanced countries in the sample and negatively for the G7 economies. Copyright Springer Science + Business Media, Inc. 2005

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Bibliographic Info

Article provided by Springer in its journal Open Economies Review.

Volume (Year): 16 (2005)
Issue (Month): 4 (October)
Pages: 363-379

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Handle: RePEc:kap:openec:v:16:y:2005:i:4:p:363-379

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Web page: http://www.springerlink.com/link.asp?id=100323

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Keywords: knowledge spillovers; product differentiation; export functions; panel cointegration;

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Cited by:
  1. Eleonora Cavallaro & Piero Esposito & Alessia Matano & Marcella Mulino, 2013. "Technological Catching Up, Quality of Exports, and Competitiveness: A Sectoral Perspective," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 49(6), pages 4-21, November.
  2. Richard Harris & John Moffat, 2011. "R&D, Innovation and Exporting," SERC Discussion Papers 0073, Spatial Economics Research Centre, LSE.
  3. A. Mantovani & M. Vancauteren, 2003. "The Harmonization of Technical Barriers to Trade, Innovation and Export Behavior: Theory with an application to EU Environmental Data," Working Papers 480, Dipartimento Scienze Economiche, Universita' di Bologna.
  4. Cavallaro, Eleonora & Mulino, Marcella, 2008. "Technological diffusion and dynamic gains from trade," MPRA Paper 13793, University Library of Munich, Germany.
  5. Laursen, Keld & Meliciani, Valentina, 2010. "The role of ICT knowledge flows for international market share dynamics," Research Policy, Elsevier, vol. 39(5), pages 687-697, June.
  6. Sang-Yong Tom Lee & Xiao Jia Guo, 2004. "Information and Communications Technology (ICT) and Spillover: A Panel Analysis," Econometric Society 2004 Far Eastern Meetings 722, Econometric Society.

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