Structural Change, Innovation and Growth in the Single EU Market
AbstractAn analysis of structural change along its main dimensions (relative goods and factor prices, shifts in sectoral output and employment shares, and the respective contributions of process and product innovation) is first presented. Next, capital mobility is introduced as well as Sinn's controversial characterization of the large German trade surplus against the backdrop of the increase in international outsourcing. The authors then flesh out the model to show that growth, at least in the medium term, hinges on both demand and supply-side dynamics, with the structure of output and the intensity of trade contributing to growth. Finally, in this exegesis on structural change, innovation, and growth, some dynamic Schumpeterian considerations are offered. The bottom line is that the ability of firms from EU15 countries to rely on imported intermediate products from EU accession countries is the basis for gaining competitiveness in both the global economy and vis-à-vis the United States. It enables them to become more price competitive while restructuring domestic outsourcing in the EU15, making it more focused on producing technologically advanced intermediate products than heretofore. A detailed set of empirical regularities are investigated along two main dimensions: innovation traits and structural change, and Sinn's bazaar effect. International competitiveness is evaluated on the basis of revealed comparative advantage indicators (RCAs) and export unit values (EUVs).
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Bibliographic InfoPaper provided by Universitätsbibliothek Wuppertal, University Library in its series EIIW Discussion paper with number disbei170.
Length: 53 Pages
Date of creation: Aug 2009
Date of revision:
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Web page: http://elpub.bib.uni-wuppertal.de
Open Economy Macroeconomics; Innovation Dynamics; Structural Change;
Find related papers by JEL classification:
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-04-04 (All new papers)
- NEP-INO-2010-04-04 (Innovation)
- NEP-KNM-2010-04-04 (Knowledge Management & Knowledge Economy)
- NEP-OPM-2010-04-04 (Open Economy Macroeconomic)
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