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High-Technology Trade: Does it Enhance National Competitiveness?

Author

Listed:
  • Idris, Zera Zuryana

    (Kulliyyah of Economics & Management Sciences International Islamic University Malaysia P.O. Box 10, 50728 Kuala Lumpur MALAYSIA.)

  • Ismail, Normaz Wana

    (School of Business and Economics Universiti Putra Malaysia 43400 UPM Serdang, Selangor MALAYSIA)

  • Ibrahim, Saifuzzaman

    (School of Business and Economics Universiti Putra Malaysia 43400 UPM Serdang, Selangor MALAYSIA)

  • Hamzah, Hanny Zurina

    (School of Business and Economics Universiti Putra Malaysia 43400 UPM Serdang, Selangor MALAYSIA)

Abstract

This study aims to explore the impact of technological development through international trade activities on national competitiveness. As such, the objective of this paper is to empirically examine the impact of engaging in high-tech trade, both exports and imports, on national competitiveness. The research was carried out on a sample of 20 major high-tech exporting countries, over the period 2007 to 2016. An econometric analysis of panel data was employed. Considering the Global Competitiveness Index as the dependent variable, the results indicate that both high-tech exports and imports positively affect national competitiveness. Specifically, the exports of high-tech force technological development and improve national competitiveness. The imports of high-tech act as a mechanism for technology transfer and positively influence national competitiveness. The findings imply that it will be beneficial for a country to identify and develop potential high-tech industries in order to achieve a higher level of national competitiveness.

Suggested Citation

  • Idris, Zera Zuryana & Ismail, Normaz Wana & Ibrahim, Saifuzzaman & Hamzah, Hanny Zurina, 2021. "High-Technology Trade: Does it Enhance National Competitiveness?," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 55(3), pages 35-48.
    • Handle: RePEc:ukm:jlekon:v:55:y:2021:i:3:p:35-48
    DOI: http://dx.doi.org/10.17576/JEM-2021-5503-03
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    More about this item

    Keywords

    GCI; International trade; innovation; national competitiveness; technology development;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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