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The Dynamics of International Competitiveness: First Results from an Analysis at the Industry Level

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  • Paolo Guerrieri Paleotti
  • Paola Maggiolini
  • Gennaro Zezza

Abstract

The paper uses the key role of technology as starting point in determining trade flows and international competitiveness at industry and country level as a growing number of theoretical contributions and empirical verifications have recognized over the past decade. The paper uses a set of new data on trade, production, technology and costs at industry level for a certain number of countries to relate trade performance to a set of different economic and technological factors across countries and industrial sectors since the early 1970s. A single model of trade specialization is applied to the data in order to establish the impact of innovation, costs and country specific factors to overall performance, both in the short run and the long run, via a panel data analysis. Model specification follows the cointegration approach, where a long‐run cointegrating vector is estimated along with the dynamic adjustment towards long‐run equilibrium. The paper presents some preliminary results, related to a certain number of different industrial sectors for the major industrialized countries.

Suggested Citation

  • Paolo Guerrieri Paleotti & Paola Maggiolini & Gennaro Zezza, 1998. "The Dynamics of International Competitiveness: First Results from an Analysis at the Industry Level," LABOUR, CEIS, vol. 12(2), pages 239-253, July.
    • Handle: RePEc:bla:labour:v:12:y:1998:i:2:p:239-253
    DOI: 10.1111/1467-9914.00067
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    Cited by:

    1. Simona Iammarino & Grazia D. Santangelo, 2001. "The Evolution of Trade and Technological in the Italian regions," ERSA conference papers ersa01p243, European Regional Science Association.
    2. Yilmaz Kilicaslan & Ilhom Temurov, 2015. "New Lessons from an Old Strategy: Import Substitution, Productivity and Competitiveness," EconWorld Working Papers 15002, WERI-World Economic Research Institute, revised Dec 2015.

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