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The impact of technology and structural change on export performance on nine developing coutries

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Author Info
Montobbio Fabio () (Department of Economics, University of Insubria, Italy)
Rampa Francesco (CESPRI, University of Bocconi, Italy)

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Abstract

This paper explores the relationship between techonological activity and export performance between 1985 and 1998 for nine large developing countries and twenty-five primary and secondary sectors. We use a structural decomposition analysis to show that developing countries tend to concentrate their innovative activities in industries which are technologically stagnant at the world level throughout the period considered. These international trends partly offset generalized national improvements in terms of patent shares. The same occurs for world export shares although countries display a greater adaptation to world demand. The econometric analysis shows that technological activity generates export gains, in high technology sectors if a country expands its innovative activities in industries with increasing levels of technological opportunities; in medium technology moving out of low opportunity sectors; in low technology if it is specialized, in the initial year, in sectors with a large world share growth. We also show that in high tech industries export performance is affected by the technical skills at the initial year; in medium and low tech sectors by the growth rates of, respectively, R&D and foreign direct investments. Country and sectoral specifities affect the relationship between technology and market shares dynamics, and structural changes in terms of innovative activity are a major channel through which tecnological capabilities are translated into export performance.

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Paper provided by Department of Economics, University of Insubria in its series Economics and Quantitative Methods with number qf0219.

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Length: 30 pages
Date of creation: Nov 2002
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Handle: RePEc:ins:quaeco:qf0219

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Keywords: innovation technical change exports development

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This paper has been announced in the following NEP Reports: References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-74, June. [Downloadable!] (restricted)
  2. Franco Malerba & Fabio Montobbio, 2000. "Knowledge Flows, Structure of Innovative Activity and International Specialization," CESPRI Working Papers 119, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Nov 2000. [Downloadable!]
  3. Chui, Michael, et al, 2002. " North-South Models of Growth and Trade," Journal of Economic Surveys, Blackwell Publishing, vol. 16(2), pages 123-65, April. [Downloadable!] (restricted)
  4. Grossman, Gene & Helpman, Elhanan, 1995. "Technology and Trade," CEPR Discussion Papers 1134, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  5. Amable, Bruno & Verspagen, Bart, 1995. "The Role of Technology in Market Shares Dynamics," Applied Economics, Taylor and Francis Journals, vol. 27(2), pages 197-204, February.
  6. Fagerberg, Jan & Sollie, Gunnar, 1987. "The Method of Constant Market Shares Analysis Reconsidered," Applied Economics, Taylor and Francis Journals, vol. 19(12), pages 1571-83, December.
  7. Krugman, Paul, 1979. "A Model of Innovation, Technology Transfer, and the World Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 253-66, April. [Downloadable!] (restricted)
  8. Greenhalgh, Christine, 1990. "Innovation and Trade Performance in the United Kingdom," Economic Journal, Royal Economic Society, vol. 100(400), pages 105-18, Supplemen.
  9. Giovanni Amendola & Giovanni Dosi & Erasmo Papagni, 1993. "The dynamics of international competitiveness," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 129(3), pages 451-471, September. [Downloadable!] (restricted)
  10. de Mello, Luiz R, Jr, 1999. "Foreign Direct Investment-Led Growth: Evidence from Time Series and Panel Data," Oxford Economic Papers, Oxford University Press, vol. 51(1), pages 133-51, January.
  11. Fabio Montobbio, 2003. "Sectoral patterns of technological activity and export market share dynamics," Cambridge Journal of Economics, Oxford University Press, vol. 27(4), pages 523-545, July.
  12. Bell, Martin & Albu, Michael, 1999. "Knowledge Systems and Technological Dynamism in Industrial Clusters in Developing Countries," World Development, Elsevier, vol. 27(9), pages 1715-1734, September. [Downloadable!] (restricted)
  13. 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. [Downloadable!] (restricted)
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  14. Antoine Magnier & Joël Toujas-Bernate, 1994. "Technology and trade: Empirical evidences for the major five industrialized countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(3), pages 494-520, September. [Downloadable!] (restricted)
  15. Lall, Sanjaya & Teubal, Morris, 1998. ""Market-stimulating" technology policies in developing countries: A framework with examples from East Asia," World Development, Elsevier, vol. 26(8), pages 1369-1385, August. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Duenas-Caparas, Maria Teresa S., 2006. "Determinants of Export Performance in the Philippine Manufacturing Sector," Discussion Papers DP 2006-18, Philippine Institute for Development Studies. [Downloadable!]
  2. Berhanu Abegaz, 2007. "The Speed of Structural Convergence in the Manufacturing Industries of Newly Industrializing Economies," Working Papers 67, Department of Economics, College of William and Mary. [Downloadable!]
  3. Francesco Laforgia & Fabio Montobbio & Luigi Orsenigo, 2007. "IPRs, technological and industrial development and growth: the case of the pharmaceutical industry," CESPRI Working Papers 206, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Oct 2007. [Downloadable!]
  4. Stefano Brusoni & Elena Cefis & Luigi Orsenigo, 2006. "Innovate or Die? A critical review of the literature on innovation and performance," CESPRI Working Papers 179, CESPRI, Centre for Research on Innovation and Internationalisation, Universita' Bocconi, Milano, Italy, revised Sep 2006. [Downloadable!]
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