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Technological Revolutions, Innovations, and Trade Performance

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Author Info
Jakob B. Madsen (Institute of Economics, University of Copenhagen)

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Abstract

This paper addresses two puzzles in international trade, namely why traditional estimates of income elasticities of exports are implausibly high and why the export growth varies much more markedly across countries than can be explained by price competitiveness and variations in income in export markets. Using data for 18 OECD countries it is shown that integration, the level of technology and the technological competitive position can, to a large degree, explain these two puzzles.

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Publisher Info
Paper provided by Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics in its series EPRU Working Paper Series with number 04-12.

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Length: 18 pages
Date of creation: Oct 2004
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Handle: RePEc:kud:epruwp:04-12

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Related research
Keywords: technology external patents product variety trade ICT revolution

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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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. Krugman, Paul, 1983. "New Theories of Trade among Industrial Countries," American Economic Review, American Economic Association, vol. 73(2), pages 343-47, May. [Downloadable!] (restricted)
  2. Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-74, June. [Downloadable!] (restricted)
  3. Greenhalgh, Christine, 1990. "Innovation and Trade Performance in the United Kingdom," Economic Journal, Royal Economic Society, vol. 100(400), pages 105-18, Supplemen.
  4. 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)
  5. Krugman, Paul, 1980. "Scale Economies, Product Differentiation, and the Pattern of Trade," American Economic Review, American Economic Association, vol. 70(5), pages 950-59, December. [Downloadable!] (restricted)
  6. Paul Krugman, 1989. "Differences In Income Elasticities and Trends in Real Exchange Rates," NBER Working Papers 2761, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Helpman, E., 1990. "Monopolistic Competition In Trade Theory," Princeton Studies in International Economics 16, International Economics Section, Departement of Economics Princeton University,.
  8. Eaton, Jonathan & Kortum, Samuel, 1996. "Trade in ideas Patenting and productivity in the OECD," Journal of International Economics, Elsevier, vol. 40(3-4), pages 251-278, May. [Downloadable!] (restricted)
    Other versions:
  9. Fagerberg, Jan, 1996. "Technology and Competitiveness," Oxford Review of Economic Policy, Oxford University Press, vol. 12(3), pages 39-51, Autumn.
  10. M. Ishaq Nadiri, 1993. "Innovations and Technological Spillovers," NBER Working Papers 4423, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Krugman, Paul, 1989. "Differences in income elasticities and trends in real exchange rates," European Economic Review, Elsevier, vol. 33(5), pages 1031-1046, May. [Downloadable!] (restricted)
  12. Greenhalgh, Christine & Taylor, Paul & Wilson, Rob, 1994. "Innovation and Export Volumes and Prices--A Disaggregated Study," Oxford Economic Papers, Oxford University Press, vol. 46(1), pages 102-35, January. [Downloadable!] (restricted)
    Other versions:
  13. Boyan Jovanovic & Peter L. Rousseau, 2003. "Two Technological Revolutions," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 419-428, 04/05. [Downloadable!] (restricted)
  14. Spencer, Barbara J & Brander, James A, 1983. "International R & D Rivalry and Industrial Strategy," Review of Economic Studies, Blackwell Publishing, vol. 50(4), pages 707-22, October. [Downloadable!] (restricted)
    Other versions:
  15. Anderton, Bob, 1999. "Innovation, Product Quality, Variety, and Trade Performance: An Empirical Analysis of Germany and the UK," Oxford Economic Papers, Oxford University Press, vol. 51(1), pages 152-67, January.
  16. 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.
  17. Nadiri, M.I., 1993. "Innovations and Technological Spillovers," Working Papers 93-31, C.V. Starr Center for Applied Economics, New York University. [Downloadable!]
  18. 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)
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