New Trade Theory and Aggregate Export Equations: an Application of Panel Cointegration
AbstractNew trade theory suggests that improvements in the variety and quality of products may be as important as price competitiveness as an explanation of trade flows. This paper tests this proposition for export volumes for the G7 using relative cumulated investment as a proxy for innovation. Positive results are obtained using new panel cointegration techniques as well as more traditional methodologies.
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Bibliographic InfoPaper provided by Exeter University, Department of Economics in its series Discussion Papers with number 9917.
Length: 44 pages
Date of creation: 1999
Date of revision:
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INNOVATIONS ; INTERNATIONAL TRADE ; REGRESSION ANALYSIS;
Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
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