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Technological convergence and trade patterns

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  • Robert Stehrer

    ()

  • Julia Wörz

Abstract

Casual evidence suggests that emerging and developing countries are often gaining market shares in world exports in technology-intensive sectors in the course of development. On the other hand textbook trade theory would suggest that these countries specialize in lower-tech industries. The reason for this is the assumption that the technology gap in these industries is lower and thus under the further assumption of equal wage rates across industries the developing countries have a comparative advantage in the lower-tech industries. In this paper we take a dynamic view on development and trade integration and distinguish three types of catching-up processes (the 'continuous convergence approach', the 'climbing up the ladder approach' and the 'jumping-up approach'). Using data for 25 countries and 32 industries we empirically analyse the different patterns of catching up over the period from 1981 to 1997. Further we discuss linkages between technological convergence, dynamics of comparative advantage and trade patterns.

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Bibliographic Info

Article provided by Springer in its journal Review of World Economics.

Volume (Year): 139 (2003)
Issue (Month): 2 (June)
Pages: 191-219

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Handle: RePEc:spr:weltar:v:139:y:2003:i:2:p:191-219

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Related research

Keywords: Catching-up; dynamics of comparative advantage; trade and technology;

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References

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  1. Quah, Danny, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEPR Discussion Papers 1355, C.E.P.R. Discussion Papers.
  2. Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-74, June.
  3. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE.
  4. Bernard, Andrew B & Jones, Charles I, 1996. "Technology and Convergence," Economic Journal, Royal Economic Society, vol. 106(437), pages 1037-44, July.
  5. Grupp, Hariolf, 1994. "The measurement of technical performance of innovations by technometrics and its impact on established technology indicators," Research Policy, Elsevier, vol. 23(2), pages 175-193, March.
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Citations

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Cited by:
  1. Stefan Bojnec & Matjaz Novak, 2006. "Technological Intensity and Patterns in Slovenian Merchandise Trade," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 4(1), pages 5-24.
  2. Carsten Herrmann-Pillath, 2006. "The true story of wine and cloth, or: building blocks of an evolutionary political economy of international trade," Journal of Evolutionary Economics, Springer, vol. 16(4), pages 383-417, October.
  3. Murshed, Syed Mansoob & Serino, Leandro Antonio, 2011. "The pattern of specialization and economic growth: The resource curse hypothesis revisited," Structural Change and Economic Dynamics, Elsevier, vol. 22(2), pages 151-161, June.
  4. Robert Stehrer, 2010. "The effects of factor and sector biased technical change revisited," Economic Change and Restructuring, Springer, vol. 43(1), pages 65-94, February.
  5. Alessia Amighini, 2005. "China in the international fragmentation of production: Evidence from the ICT industry," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 2(2), pages 203-219, December.
  6. Daniela Marconi & Valeria Rolli, 2007. "Comparative advantage patterns and domestic determinants in emerging countries: an analysis with a focus on technology," Temi di discussione (Economic working papers) 638, Bank of Italy, Economic Research and International Relations Area.
  7. Andrea Zaghini, 2005. "Evolution of trade patterns in the new EU member states," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 13(4), pages 629-658, October.
  8. Finicelli, Andrea & Sbracia, Massimo & Zaghini, Andrea, 2008. "A disaggregated analysis of the export performance of some industrial and emerging countries," MPRA Paper 11000, University Library of Munich, Germany.
  9. Robert Stehrer, 2002. "Dynamics of Trade Integration and Technological Convergence," Economic Systems Research, Taylor & Francis Journals, vol. 14(3), pages 219-244.
  10. Frederic Carluer, 2005. "Dynamics of Russian regional clubs: The time of divergence," Regional Studies, Taylor & Francis Journals, vol. 39(6), pages 713-726.
  11. Ivan Savin & Peter Winker, 2009. "Forecasting Russian Foreign Trade Comparative Advantages in the Context of a Potential WTO Accession," Central European Journal of Economic Modelling and Econometrics, CEJEME, vol. 1(2), pages 111-138, November.
  12. Imre Ferto, 2007. "The Dynamics of Trade in Central and Eastern European Countries," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 5(1), pages 5-23.
  13. Robert Stehrer, 2004. "Can Trade Explain the Sector Bias of Skill-biased Technical Change?," wiiw Working Papers 30, The Vienna Institute for International Economic Studies, wiiw.

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