IDEAS home Printed from https://ideas.repec.org/a/taf/ecinnt/v32y2023i5p713-730.html
   My bibliography  Save this article

High-tech trade as determinant of the US bilateral trade balance

Author

Listed:
  • Carlos A. Carrasco
  • Edgar Demetrio Tovar-García

Abstract

The relevance of high-tech industries has increased in recent years, particularly because of their effects on productivity and economic growth. However, the analysis of their relationship with the external sector is scarce, being a potential determinant of external imbalances. We examine the role of the share of high-tech exports and imports in the performance of the bilateral trade of the United States (US), characterized by a persistent trade deficit. The study focuses on bilateral data between the US and its 20 major partners, including developed and emerging countries, over the years 1990–2019. Accordingly, we developed dynamic panel data models based on the DIF GMM estimator, examining the relationship between bilateral trade balance and traditional regressors (relative income and exchange rate) and new explanatory variables (the high-tech composition of exports and imports). We found that the US high-tech composition of exports and imports has been changing over the last three decades, with the share of high-tech imports increasing and their exports decreasing. Furthermore, the regression results suggest that imports composed of high-tech goods are significant in explaining the US trade deficit, while the bilateral real exchange rate remains as a robust explanatory variable.

Suggested Citation

  • Carlos A. Carrasco & Edgar Demetrio Tovar-García, 2023. "High-tech trade as determinant of the US bilateral trade balance," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 32(5), pages 713-730, July.
  • Handle: RePEc:taf:ecinnt:v:32:y:2023:i:5:p:713-730
    DOI: 10.1080/10438599.2021.2018313
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10438599.2021.2018313
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/10438599.2021.2018313?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:ecinnt:v:32:y:2023:i:5:p:713-730. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/GEIN20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.