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International Trade, Technological Innovation And Income: A Gravity Model Approach

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Author Info
Inmaculada Martínez Zarzoso () (Universitat Jaume I)
Laura Márquez Ramos (Universitat Jaume I)

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Abstract

In this research, we estimate a gravity equation augmented with technological innovation and transport infrastructure variables in order to analyse the impact of these variables on international trade. According to our results, investing in transport infrastructure and technological innovation leads to the improvement and maintenance of the level of competitiveness. Moreover, our results support the hypothesis that countries tend to trade more when they are ¿closer¿ from a technological point of view and that the development of information technology has lowered the effect of geography on trade. En este trabajo, estimamos un modelo de gravedad ampliado con variables de innovación tecnológica y de infraestructura de transporte con el fin de analizar el impacto de estas variables sobre el comercio internacional. Según los resultados obtenidos, invertir en infraestructuras de transporte y en innovación tecnológica mejora y mantiene los niveles de competitividad alcanzados en los países. Nuestros resultados, también apoyan la hipótesis de que los países comercian más cuanto más similares son desde un punto de vista tecnológico y que el desarrollo de las tecnologías de la información ha reducido el efecto negativo de la distancia geográfica sobre el comercio internacional.

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Publisher Info
Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 2005-15.

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Length: 32 pages
Date of creation: May 2005
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Publication status: Published by Ivie
Handle: RePEc:ivi:wpasec:2005-15

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Related research
Keywords: modelo de gravedad; tecnología; infraestructura; comercio internacional gravity model; technology; infrastructure; international trade;

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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. Stefan Lachenmaier; Ludger Woessmann, 2004. "Does Innovation Cause Exports? Evidence from Exogenous Innovation Impulses and Obstacles Using German Micro Data," Econometric Society 2004 Australasian Meetings 200, Econometric Society. [Downloadable!]
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  2. Jonathan Eaton & Samuel Kortum, 1997. "Technology and Bilateral Trade," Boston University - Institute for Economic Development 79, Boston University, Institute for Economic Development.
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  3. Jeffrey A. Frankel & David Romer, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June. [Downloadable!] (restricted)
  4. Freund, Caroline L. & Weinhold, Diana, 2004. "The effect of the Internet on international trade," Journal of International Economics, Elsevier, vol. 62(1), pages 171-189, January. [Downloadable!] (restricted)
  5. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March. [Downloadable!]
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  6. Robert W. Fogel, 1999. "Catching Up with the Economy," American Economic Review, American Economic Association, vol. 89(1), pages 1-21, March. [Downloadable!] (restricted)
  7. Bougheas, Spiros & Demetriades, Panicos O. & Morgenroth, Edgar L. W., 1999. "Infrastructure, transport costs and trade," Journal of International Economics, Elsevier, vol. 47(1), pages 169-189, February. [Downloadable!] (restricted)
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  8. Irwin, Douglas A. & Tervio, Marko, 2002. "Does trade raise income?: Evidence from the twentieth century," Journal of International Economics, Elsevier, vol. 58(1), pages 1-18, October. [Downloadable!] (restricted)
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  9. Wong, Wei-Kang, 2004. "How good are trade and telephone call traffic in bridging income gaps and TFP gaps?," Journal of International Economics, Elsevier, vol. 64(2), pages 441-463, December. [Downloadable!] (restricted)
  10. Jonathan Eaton & Samuel Kortum, 2002. "Technology, Geography, and Trade," Econometrica, Econometric Society, vol. 70(5), pages 1741-1779, September. [Downloadable!] (restricted)
  11. Deardorff, A.V., 1995. "Determinants of Bilateral Trade : Does Gravity Work in a Neoclassical World?," Papers 95-05, Michigan - Center for Research on Economic & Social Theory.
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  12. Filippini, Carlo & Molini, Vasco, 2003. "The determinants of East Asian trade flows: a gravity equation approach," Journal of Asian Economics, Elsevier, vol. 14(5), pages 695-711, October. [Downloadable!] (restricted)
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Cited by:
(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. Ghazalian, Pascal L. & Furtan, W. Hartley, 2007. "The Effect of Innovation on Agricultural and Agri-food Exports in OECD Countries," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(03), December. [Downloadable!]
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