Technological Convergence and International Trade

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Technological Convergence and International Trade

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Ben-David, Dan

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Dan Ben-David

Abstract

This paper builds on earlier evidence showing that, while most countries exhibit little evidence of unconditional income convergence, countries that trade heavily with one another tend to exhibit a much higher incidence of convergence. Two alternative explanations for the trade-related convergence are explored here. The first alternative is that the trade-related income convergence is due to a convergence in capital-labour ratios. Little support is found for this explanation. The other alternative examined here is that of a trade-related convergence in technologies. This alternative is corroborated by a high incidence of convergence in total factor productivities among countries that trade heavily with one another – an outcome that is not common between these same countries when they are grouped randomly rather than on the basis of trade.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1359.

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Date of creation: Mar 1996
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Handle: RePEc:cpr:ceprdp:1359

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Paper
- Ben-David, D. & Rahman, A., 1996. "Technological Convergence and International Trade," Papers 4-96, Tel Aviv.

Find related papers by JEL classification:
C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions
O1 - Economic Development, Technological Change, and Growth - - Economic Development
O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies

Cited by:
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A. N. Rambaldi & Iyer & K., 2004. "Measuring Spillovers from Alternative Forms of Foreign Investment," Econometric Society 2004 Australasian Meetings 149, Econometric Society. [Downloadable!]
Other versions:
- Alicia N. Rambaldi & Kam Ki Tang & G. Iyer Krishnai, 2004. "Measuring Spillovers from Alternative Forms of Foreign Investment," CEPA Working Papers Series WP012004, School of Economics, University of Queensland, Australia. [Downloadable!]
Ville Kaitila, 2004. "Integration and Conditional Convergence in the Enlarged EU Area," Discussion Papers 935, The Research Institute of the Finnish Economy. [Downloadable!]
Other versions:
- Ville Kaitila, 2005. "Integration and Conditional Convergence in the Enlarged EU Area," Economics Working Papers 031, European Network of Economic Policy Research Institutes. [Downloadable!]
Juncal Cuñado, . "Convergencia real o acercamiento cíclico? España y la Unión Europea," Studies on the Spanish Economy 57, FEDEA. [Downloadable!]
Ville Kaitila, 2003. "Convergence of Real GDP per Capita in the EU15 area: How do the Accession Countries Fit in ?," Discussion Papers 865, The Research Institute of the Finnish Economy. [Downloadable!]
Michelle P. Connolly, 1998. "The dual nature of trade: measuring its impact on imitation and growth," Staff Reports 44, Federal Reserve Bank of New York. [Downloadable!]
Michelle P. Connolly & Diego Valderrama, 2005. "North-South technological diffusion and dynamic gains from trade," Working Papers in Applied Economic Theory 2004-24, Federal Reserve Bank of San Francisco. [Downloadable!]
Ville Kaitila, 2004. "Convergence of real GDP per capita in the EU15. How do the Accession Countries fit in?," Economics Working Papers 025, European Network of Economic Policy Research Institutes. [Downloadable!]
Teemu Haukioja & Jarmo Hahl, 2001. "The Emergence of the New Economy, and its Challenge to Financial Intermediation and Banking," Discussion Papers 772, The Research Institute of the Finnish Economy. [Downloadable!]
Michelle P. Connolly, 1997. "Technological diffusion through trade and imitation," Staff Reports 20, Federal Reserve Bank of New York. [Downloadable!]
Frankel, Jeffrey, 2004. "Real Convergence and Euro Adoption in Central and Eastern Europe: Trade and Business Cycle Correlations as Endogenous Criteria for Joining EMU," Working Paper Series rwp04-039, Harvard University, John F. Kennedy School of Government. [Downloadable!]

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