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Technological Revolutions, Innovations, and Trade Performance

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  • Jakob B. Madsen

    (Institute of Economics, University of Copenhagen)

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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File URL: http://www.econ.ku.dk/epru/files/wp/wp-04-12.pdf
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Bibliographic 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
Date of revision:
Handle: RePEc:kud:epruwp:04-12

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Related research

Keywords: technology; external patents; product variety; trade; ICT revolution;

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  1. M. Ishaq Nadiri, 1993. "Innovations and Technological Spillovers," NBER Working Papers 4423, National Bureau of Economic Research, Inc.
  2. Krugman, Paul, 1983. "New Theories of Trade among Industrial Countries," American Economic Review, American Economic Association, vol. 73(2), pages 343-47, May.
  3. Greenhalgh, Christine, 1990. "Innovation and Trade Performance in the United Kingdom," Economic Journal, Royal Economic Society, vol. 100(400), pages 105-18, Supplemen.
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