Comparative Advantage Patterns and Domestic Determinants in Emerging Countries: An Analysis with a Focus on Technology
AbstractDuring the last two decades a number of emerging economies have become deeply engaged in technology-intensive production. This has been reflected in their international trade specialization shifting from labour-intensive goods towards capital-intensive ones, and in rapid productivity gains across all manufacturing activities. The paper investigates for a sample of sixteen emerging countries, the linkages between the pattern of revealed comparative advantages (RCAs), captured by a modified version of the Lafay index of international trade specialization, and the competitiveness structure of the domestic manufacturing sector, measured by a set of industry and country-specific variables. Positive and large RCAs are found to be associated with low unit labour costs in both low-technology (high labour-intensive) and medium- or high tech sectors. On the other hand, domestic accumulation of physical capital is associated with positive and large RCAs in medium- or high technology sectors. The international disadvantage (negative RCAs) in technology-intensive production tends to deepen for countries with low human capital, whereas it diminishes for countries with large domestic markets importing technology through foreign capital goods.
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Bibliographic InfoPaper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number RP2008/81.
Length: 38 pages
Date of creation: 2008
Date of revision:
revealed comparative advantages; technological up-grading;
Other versions of this item:
- Daniela Marconi & Valeria Rolli, 2007. "Comparative advantage patterns and domestic determinants in emerging countries: an analysis with a focus on technology," Temi di discussione (Economic working papers) 638, Bank of Italy, Economic Research and International Relations Area.
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
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