The Impact of Technological Opportunity on the Dynamics of Trade Performance
AbstractThe paper explores firstly the impact of technological change on trade growth at the country level, using trade statistics and statistics on patenting activity in the US, across 20 countries for 17 manufacturing sectors. Secondly, using structural decomposition analysis, the paper examine whether the degree to which countries get access to sectors with above average growth in technological opportunity has any impact on growth in aggregate market shares of exports. The results demonstrate that there is a positive relationship between change in trade performance and change in technological capabilities across countries for 8 ‘technology intensive’ sectors over the period 1965-1988. It is also shown that there appear to be some (however weak) relationship between the degree to which countries get access to sectors with above average growth in technological opportunity and growth in aggregate market shares. However, there seems to be a much stronger positive relationship between growth rates in trade performance and the individual ‘national innovation system’s’ ability to actively move into technological sectors offering above average technological opportunity.
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Bibliographic InfoPaper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 96-12.
Date of creation: 1996
Date of revision:
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Web page: http://www.druid.dk/
Technological opportunity; trade growth; national systems of innovation; structural decomposition analysis;
Other versions of this item:
- Laursen, Keld, 1999. "The impact of technological opportunity on the dynamics of trade performance," Structural Change and Economic Dynamics, Elsevier, vol. 10(3-4), pages 341-357, December.
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
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