The effect of technological innovation on international trade: a nonlinear approach
Abstract
This paper focuses on the relationship between technological innovation and international trade. In particular, the effect of technological achievement on exports is studied. In order to measure technological innovation, the technological achievement index (TAI) is used, thus providing a summary of a society's technological achievements and allowing countries to be classified into four groups according to their level of technological innovation: Leaders, Potential Leaders, Dynamic Adopters and Marginalised. The effect of technological variables on sectoral exports is analysed using a gravity model of trade. The existence of a possible non-linear relationship is also investigated, since the effect of improved technological innovation on trade could vary according to the technological achievement in countries. Results show the expected positive effect of technological innovation on export performance and the existence of non-linearities is confirmed. A U-shaped relationship is found between exports and creation of technology and between exports and diffusion of old innovations, whereas an invertedU-shaped relationship is found between exports and diffusion of recent innovations and between exports and human skills. --Download Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.Bibliographic Info
Paper provided by Kiel Institute for the World Economy in its series Economics Discussion Papers with number 2009-24.Length:
Date of creation: 2009
Date of revision:
Handle: RePEc:zbw:ifwedp:7588
Contact details of provider:
Postal: Hindenburgufer 66, D-24105 Kiel
Phone: +49 431 8814-1
Fax: +49 431 8814528
Email:
Web page: http://www.economics-ejournal.org/
More information through EDIRC
Related research
Keywords: Technological innovation; sectoral exports; gravity model; panel data; non-linearities;This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-28 (All new papers)
- NEP-INO-2009-07-28 (Innovation)
- NEP-INT-2009-07-28 (International Trade)
- NEP-KNM-2009-07-28 (Knowledge Management & Knowledge Economy)
References
References listed on IDEASPlease 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.:
- Robert C. Feenstra & Robert E. Lipsey & Haiyan Deng & Alyson C. Ma & Hengyong Mo, 2005. "World Trade Flows: 1962-2000," NBER Working Papers 11040, National Bureau of Economic Research, Inc.
- James E. Rauch, 1996.
"Networks versus Markets in International Trade,"
NBER Working Papers
5617, National Bureau of Economic Research, Inc.
- Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
- Patrik Gustavsson Tingvall & Andreas Poldahl, 2006.
"Is there really an inverted U-shaped relation between competition and R&D?,"
Economics of Innovation and New Technology,
Taylor and Francis Journals, vol. 15(3), pages 101-118.
- Patrik Gustavsson Tingvall & Andreas Poldahl, 2006. "Is there really an inverted U-shaped relation between competition and R&D?," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 15(2), pages 101-118.
- Poldahl, Andreas & Gustavsson Tingvall, Patrik, 2005. "Is There Really an Inverted U-shaped Relation Between Competition and R&D?," Working Paper Series 204, Trade Union Institute for Economic Research.
- Gustavsson Tingvall, Patrik & Poldahl, Andreas, 2005. "Is There Really an Inverted U-shaped Relation Between Competition and R&D?," EIJS Working Paper Series 207, The European Institute of Japanese Studies.
- Joao Santos Silva & Silvana Tenreyro, 2005.
"The Log of Gravity,"
CEP Discussion Papers
dp0701, Centre for Economic Performance, LSE.
- J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
- Santos Silva, Joao & Tenreyro, Silvana, 2005. "The Log of Gravity," CEPR Discussion Papers 5311, C.E.P.R. Discussion Papers.
- Jonathan Eaton & Samuel Kortum, 1997.
"Technology and Bilateral Trade,"
Boston University - Institute for Economic Development
79, Boston University, Institute for Economic Development.
- Jonathan Eaton & Samuel Kortum, 1997. "Technology and Bilateral Trade," NBER Working Papers 6253, National Bureau of Economic Research, Inc.
- Fink, Carsten & Mattoo, Aaditya & Neagu, Ileana Cristina, 2005.
"Assessing the impact of communication costs on international trade,"
Journal of International Economics,
Elsevier, vol. 67(2), pages 428-445, December.
- Fink, Carsten & Mattoo, Aaditya & Neagu, Ileana Cristina, 2002. "Assessing the impact of communication costs on international trade," Policy Research Working Paper Series 2929, The World Bank.
- Loungani, Prakash & Mody, Ashoka & Razin, Assaf, 2002. "The Global Disconnect: The Role of Transactional Distance and Scale Economies in Gravity Equations," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 526-43, December.
- Tang, Linghui, 2006. "What accounts for the growth of trade in differentiated goods: Economic causes or technological imperatives?," Economics Letters, Elsevier, vol. 91(2), pages 204-209, May.
- Jan Fagerberg, 1996. "Competitiveness, Scale and R&D," Working Papers Archives 1996545, Centre for Technology, Innovation and Culture, University of Oslo.
Citations
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:zbw:ifwedp:7588For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

