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National Concentration of High-tech Products: The Second Great Divergence?

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  • Ju, Jiandong
  • Lu, Bing
  • Yu, Xinding

Abstract

Based on the product-country level trade data from 2004 to 2017, as well as the High-Tech Products Catalog from the US Census Bureau, this paper examines empirically the current phenomenon of “national concentration” in high-tech exports. The results show that the phenomenon of “national concentration” not only exists but also tends to be self-reinforcing. Compared with other products, the exports of high-tech products tend to be concentrated in certain countries, and this concentration trends were further strengthened after the global financial crisis of 2008–2009. The national concentration of R&D activities may be one of the important causes of the national concentration of high-tech products. This pattern remains robust when we further use the value-added export data and different definitions of high-tech products. We argue that the phenomenon of “national concentration” of high-tech exports may herald the arrival of the “Second Great Divergence” – the divergence between innovative and manufacturing activities – in the global economy.

Suggested Citation

  • Ju, Jiandong & Lu, Bing & Yu, Xinding, 2023. "National Concentration of High-tech Products: The Second Great Divergence?," MPRA Paper 115956, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:115956
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    References listed on IDEAS

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    1. Bee Yan Aw & Mark J. Roberts & Daniel Yi Xu, 2011. "R&D Investment, Exporting, and Productivity Dynamics," American Economic Review, American Economic Association, vol. 101(4), pages 1312-1344, June.
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    3. Ju, Jiandong & Yu, Xinding, 2015. "Productivity, profitability, production and export structures along the value chain in China," Journal of Comparative Economics, Elsevier, vol. 43(1), pages 33-54.
    4. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
    5. Wang, Zhi & Wei, Shang-Jin & Yu, Xinding & Zhu, Kunfu, 2022. "Global value chains over business cycles," Journal of International Money and Finance, Elsevier, vol. 126(C).
    6. Ufuk Akcigit & Sina T. Ates, 2021. "Ten Facts on Declining Business Dynamism and Lessons from Endogenous Growth Theory," American Economic Journal: Macroeconomics, American Economic Association, vol. 13(1), pages 257-298, January.
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    Cited by:

    1. Ligang Song & Yixiao Zhou, 2023. "Guest Editors' Words," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(1), pages 1-4, January.

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    More about this item

    Keywords

    high-tech products; national concentration; R&D; second great divergence;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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