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Exports, Product Differentiation and Knowledge Spillovers

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  • Miguel León-Ledesma

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Abstract

Empirical studies on aggregate export behavior have recently emphasized the role played by innovation as the main force driving product differentiation and competitiveness for developed countries. These studies treat foreign innovation as a variable that affects negatively national export shares. We incorporate the impact of foreign innovation in a standard new trade theory model and find that, if knowledge spillovers exist, foreign knowledge accumulation could even have a positive effect on national exports. We then test the model using aggregate export data for a set of 21 OECD economies and find that the foreign stock of knowledge affects exports positively for the less advanced countries in the sample and negatively for the G7 economies. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Miguel León-Ledesma, 2005. "Exports, Product Differentiation and Knowledge Spillovers," Open Economies Review, Springer, vol. 16(4), pages 363-379, October.
  • Handle: RePEc:kap:openec:v:16:y:2005:i:4:p:363-379 DOI: 10.1007/s11079-005-4740-6
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ioannis Bournakis & Dimitris Christopoulos & Sushanta Mallick, 2015. "Knowledge Spillovers, absorptive capacity and growth: An Industry-level Analysis for OECD Countries," Working Papers 57, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    2. A. Mantovani & M. Vancauteren, 2003. "The Harmonization of Technical Barriers to Trade, Innovation and Export Behavior: Theory with an application to EU Environmental Data," Working Papers 480, Dipartimento Scienze Economiche, Universita' di Bologna.
    3. Simplice Asongu & Ndemaze Asongu, 2017. "The role of mobile phones in governance-driven technology exports in Sub-Saharan Africa," Working Papers 17/036, African Governance and Development Institute..
    4. Richard Harris & John Moffat, 2011. "R&D, Innovation and Exporting," SERC Discussion Papers 0073, Spatial Economics Research Centre, LSE.
    5. Simplice Asongu & Uchenna Efobi & Ibukun Beecroft, 2015. "Inclusive Human Development in Pre-crisis Times of Globalization-driven Debts," African Development Review, African Development Bank, pages 428-442.
    6. Bournakis, Ioannis & Tsoukis, Christopher, 2016. "Government size, institutions, and export performance among OECD economies," Economic Modelling, Elsevier, vol. 53(C), pages 37-47.
    7. David Doloreux & Anika Laperrière, 2014. "Internationalisation and innovation in the knowledge-intensive business services," Service Business, Springer;Pan-Pacific Business Association, pages 635-657.
    8. Cavallaro, Eleonora & Mulino, Marcella, 2008. "Technological diffusion and dynamic gains from trade," MPRA Paper 13793, University Library of Munich, Germany.
    9. Horowitz, Joel L. & Lee, Sokbae, 2005. "Nonparametric Estimation of an Additive Quantile Regression Model," Journal of the American Statistical Association, American Statistical Association, pages 1238-1249.
    10. Eleonora Cavallaro & Piero Esposito & Alessia Matano & Marcella Mulino, 2013. "Technological Catching Up, Quality of Exports, and Competitiveness: A Sectoral Perspective," Emerging Markets Finance and Trade, Taylor & Francis Journals, pages 4-21.
    11. Simplice Asongu, 2017. "Mobile Phone Innovation and Technology-driven Exports in Sub-Saharan Africa," Working Papers 17/042, African Governance and Development Institute..
    12. Laursen, Keld & Meliciani, Valentina, 2010. "The role of ICT knowledge flows for international market share dynamics," Research Policy, Elsevier, pages 687-697.
    13. repec:kap:iaecre:v:14:y:2008:i:3:p:265-279 is not listed on IDEAS

    More about this item

    Keywords

    knowledge spillovers; product differentiation; export functions; panel cointegration;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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