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Can Countries Create Comparative Advantages? R&D-expenditures, high-tech exports and country size in 19 OECD-countries, 1981-1999

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Author Info
Braunerhjelm, Pontus () (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)
Thulin, Per () (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

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Abstract

This paper analyses how increased R&D expenditures and market size influence the distribution of comparative advantage. Previous studies report ambiguous results and also refer to periods when markets where much more segmented and production factors less mobile. The empirical analysis comprise 19 OECD-countries and spans the period 1981 to 1999. It is shown how an increase in R&D-expenditures by one percentage point implies a three-percentage point increase in high-technology exports, whereas market size fails to attain significance. Also institutional factors influence the dynamics of comparative advantage

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Paper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 61.

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Length: 31 pages
Date of creation: 04 May 2006
Date of revision:
Handle: RePEc:hhs:cesisp:0061

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Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/
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Related research
Keywords: Dynamic comparative advantage; R&D; market size; institutions;

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Find related papers by JEL classification:
F10 - International Economics - - Trade - - - General
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General

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