Skill Intensity in Foreign Trade and Economic Growth
This paper explores the link between trade structure, trade specialization and per capita incomegrowth. It is argued that industrial upgrading in export specialization patterns has a positive long-rungrowth effect, while the effect of structural change in industrial import patterns is in principleambiguous. A standard empirical growth model is augmented by various measures of structuralchange. The hypothesis that not trade per se matters, but that various types of trading activitiesimpact differently on economic growth is tested on a sample of 45 countries (OECD members andselected Asian and Latin American countries) over the period 1981-1997. The data set comprisesexports and imports for 35 manufacturing industries at the 3-digit level of the ISIC classificationwhich are grouped according to skill intensity. The results of the dynamic panel estimation pointtowards a positive long-run growth effect arising from trade specialization in medium-high-skill-intensive industries. Further, important distinctions between the skill intensity of export and importpatterns and their respective influence on economic development, as well as between the group ofdeveloping countries and OECD members are observed in this relationship.
(This abstract was borrowed from another version of this item.)
Please 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.:
- Jan Fagerberg, 2000.
"Technological Progress, Structural Change and Productivity Growth: A Comparative Study,"
5, Centre for Technology, Innovation and Culture, University of Oslo.
- Fagerberg, Jan, 2000. "Technological progress, structural change and productivity growth: a comparative study," Structural Change and Economic Dynamics, Elsevier, vol. 11(4), pages 393-411, December.
- Xavier Sala-i-Martin, 1997.
"I just ran four million regressions,"
Economics Working Papers
201, Department of Economics and Business, Universitat Pompeu Fabra.
- Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," The Quarterly Journal of Economics, Oxford University Press, vol. 106(2), pages 369-405.
- Robert Stehrer & Julia Wörz, 1970.
"Industrial Diversity, Trade Patterns and Productivity Convergence,"
wiiw Working Papers
23, The Vienna Institute for International Economic Studies, wiiw.
- Robert Stehrer & Julia Woerz, 2009. "Industrial Diversity, Trade Patterns, and Productivity Convergence," Review of Development Economics, Wiley Blackwell, vol. 13(2), pages 356-372, 05.
- Levine, Ross & Renelt, David, 1991.
"A sensitivity analysis of cross-country growth regressions,"
Policy Research Working Paper Series
609, The World Bank.
- Levine, Ross & Renelt, David, 1992. "A Sensitivity Analysis of Cross-Country Growth Regressions," American Economic Review, American Economic Association, vol. 82(4), pages 942-63, September.
- Robert J. Barro, 1989.
"Economic Growth in a Cross Section of Countries,"
NBER Working Papers
3120, National Bureau of Economic Research, Inc.
- Michael Peneder, . "Intangible Investment and Human Resources. The New WIFO Taxonomy of Manufacturing Industries," WIFO Working Papers 114, WIFO.
- N. Gregory Mankiw & David Romer & David N. Weil, 1990.
"A Contribution to the Empirics of Economic Growth,"
NBER Working Papers
3541, National Bureau of Economic Research, Inc.
- Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc.
- David Greenaway & Wyn Morgan & Peter Wright, 1999. "Exports, export composition and growth," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 8(1), pages 41-51.
- Keller, Wolfgang, 2000.
"Do Trade Patterns and Technology Flows Affect Productivity Growth?,"
World Bank Economic Review,
World Bank Group, vol. 14(1), pages 17-47, January.
- Wolfgang Keller, 1999. "How Trade Patterns and Technology Flows Affect Productivity Growth," NBER Working Papers 6990, National Bureau of Economic Research, Inc.
- Keller, Wolfgang, 1997. "How trade patterns and technology flows affect productivity growth," Policy Research Working Paper Series 1831, The World Bank.
- Redding, Stephen, 1999.
"Dynamic Comparative Advantage and the Welfare Effects of Trade,"
Oxford Economic Papers,
Oxford University Press, vol. 51(1), pages 15-39, January.
- Redding, S., 1997. "Dynamic Comparative Advantage and the Welfare Effects of Trade," Economics Papers 140, Economics Group, Nuffield College, University of Oxford.
- Amable, Bruno, 2000. "International specialisation and growth," Structural Change and Economic Dynamics, Elsevier, vol. 11(4), pages 413-431, December.
- Michael Lee & Ritchard Longmire & Laszlo Matyas & Mark Harris, 1998.
"Growth convergence: some panel data evidence,"
Taylor & Francis Journals, vol. 30(7), pages 907-912.
- Lee, M. & Longmire, R. & Matyas, L. & Harris, M., 1996. "Growth Convergence: Some Panel Data Evidence," Monash Econometrics and Business Statistics Working Papers 14/96, Monash University, Department of Econometrics and Business Statistics.
- Thomas Vollrath, 1991. "A theoretical evaluation of alternative trade intensity measures of revealed comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 127(2), pages 265-280, June.
- Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
- Keld Laursen, 1998. "How Structural Change Differs, and Why it Matters (for Economic Growth)," DRUID Working Papers 98-25, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Feder, Gershon, 1983. "On exports and economic growth," Journal of Development Economics, Elsevier, vol. 12(1-2), pages 59-73.
- Ehsan U. Choudhri & Dalia S. Hakura, 2000.
"International Trade and Productivity Growth: Exploring the Sectoral Effects for Developing Countries,"
IMF Staff Papers,
Palgrave Macmillan, vol. 47(1), pages 2.
- Ehsan U. Choudhri & Dalia Hakura, 2000. "International Trade and Productivity Growth: Exploring the Sectoral Effects for Developing Countries," IMF Working Papers 00/17, International Monetary Fund.
- Grupp, Hariolf, 1994. "The measurement of technical performance of innovations by technometrics and its impact on established technology indicators," Research Policy, Elsevier, vol. 23(2), pages 175-193, March.
- Edward E. Leamer, 1982.
"Let's Take the Con Out of Econometrics,"
UCLA Economics Working Papers
239, UCLA Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:kap:empiri:v:32:y:2005:i:1:p:117-144. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.