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

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  • Montobbio Fabio

    ()
    (Department of Economics, University of Insubria, Italy)

  • Rampa Francesco

    (CESPRI, University of Bocconi, Italy)

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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Bibliographic Info

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
Date of revision:
Handle: RePEc:ins:quaeco:qf0219

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Keywords: innovation; technical change; exports; development;

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Citations

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Cited by:
  1. Saygılı, Hülya & Saygılı, Mesut, 2011. "Structural changes in exports of an emerging economy: Case of Turkey," Structural Change and Economic Dynamics, Elsevier, vol. 22(4), pages 342-360.
  2. Bodas Freitas, Isabel Maria & Marques, Rosane Argou & Silva, Evando Mirra de Paula e, 2013. "University–industry collaboration and innovation in emergent and mature industries in new industrialized countries," Research Policy, Elsevier, vol. 42(2), pages 443-453.
  3. Pranav N. Desai, 2013. "Export Innovation System: Changing Structure of India’s Technology-Intensive Exports," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(3), pages 21-52, October.
  4. Alexandre Almeida & Aurora A.C. Teixeira, 2008. "One size does not fit all… An economic development perspective on the asymmetric impact of Patents on R&D," FEP Working Papers 292, Universidade do Porto, Faculdade de Economia do Porto.
  5. 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.
  6. Figueiredo, Paulo N., 2008. "Industrial Policy Changes and Firm-Level Technological Capability Development: Evidence from Northern Brazil," World Development, Elsevier, vol. 36(1), pages 55-88, January.
  7. Stefano Brusoni & Elena Cefis & Luigi Orsenigo, 2006. "Innovate or Die? A critical review of the literature on innovation and performance," KITeS Working Papers 179, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Sep 2006.
  8. Brunner, Hans-Peter & Cali, Massimiliano, 2006. "The dynamics of manufacturing competitiveness in South Asia: An analysis through export data," Journal of Asian Economics, Elsevier, vol. 17(4), pages 557-582, October.
  9. Urraca-Ruiz, Ana, 2013. "The ‘technological’ dimension of structural change under market integration," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 1-18.
  10. 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.
  11. World Bank, 2008. "Local Gains from Global Opportunities : Improving Central America's Investment Climate," World Bank Other Operational Studies 7959, The World Bank.
  12. Fabio Montobbio & Valerio Sterzi, 2008. "Inventing Together: Exploring the Nature of International Knowledge Spillovers in Latin America," KITeS Working Papers 225, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Nov 2008.
  13. Meschi, Elena & Vivarelli, Marco, 2009. "Trade and Income Inequality in Developing Countries," World Development, Elsevier, vol. 37(2), pages 287-302, February.
  14. Abraham, Vinoj & Sasikumar, S.K., 2010. "Labour Cost and Export Behaviour of Firms in Indian Textile and Clothing Industry," MPRA Paper 22784, University Library of Munich, Germany.
  15. Vivarelli, Marco, 2014. "Structural Change and Innovation as Exit Strategies from the Middle Income Trap," IZA Discussion Papers 8148, Institute for the Study of Labor (IZA).
  16. Ewa Balcerowicz & Marek Peczkowski & Anna Wziatek-Kubiak, 2009. "The Innovation Patterns of Firms in Low and High Technology Manufacturing Sectors in the New Member States," CASE Network Studies and Analyses 0390, CASE-Center for Social and Economic Research.
  17. Ana Urraca Ruiz & C. Frederico Rocha, 2011. "On the relations between technological opportunity, specialization and growth," Working Papers 13-2011, Universidade de São Paulo, Faculdade de Economia, Administração e Contabilidade de Ribeirão Preto.
  18. Ma. Teresa S. Dueñas-Caparas, 2006. "Determinants of Export Performance in the Philippine Manufacturing Sector," Microeconomics Working Papers 22042, East Asian Bureau of Economic Research.
  19. Gould, David & Loening, Josef L., 2008. "Central America's Macroeconomic Environment and the Role of the Investment Climate under Free Trade," MPRA Paper 25896, University Library of Munich, Germany.
  20. Francesco Laforgia & Fabio Montobbio & Luigi Orsenigo, 2007. "IPRs, technological and industrial development and growth: the case of the pharmaceutical industry," KITeS Working Papers 206, KITeS, Centre for Knowledge, Internationalization and Technology Studies, Universita' Bocconi, Milano, Italy, revised Oct 2007.

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