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The role of technology gap in the trade of Poland. Panel estimation in the gravity framework

Author

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  • Tomasz Brodzicki

    (University of Gdansk)

Abstract

The objective of this paper is the analysis of the role of technology gap in explaining the aggregate intensity of Polish exports over the period 1999–2011 in a panel of all possible Polish trade partners. We construct a basic export model in a gravity framework and further augmented by incorporating various measures of technological gap. We find it to play a substantial role in determining the intensity of Polish trade relations. In general, Poland exports more to countries at the similar level of technological sophistication. We test the robustness of the results and find that the impact of technology gap varies with respect to different groups of partners depending on their technological level.

Suggested Citation

  • Tomasz Brodzicki, 2016. "The role of technology gap in the trade of Poland. Panel estimation in the gravity framework," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 41, pages 127-144.
    • Handle: RePEc:sgh:annals:i:41:y:2016:p:127-144
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    References listed on IDEAS

    as
    1. Inmaculada Martínez-Zarzoso & Laura Márquez-Ramos, 2005. "Does Technology Foster Trade? Empirical Evidence for Developed and Developing Countries," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 33(1), pages 55-69, March.
    2. Krugman, Paul, 1979. "A Model of Innovation, Technology Transfer, and the World Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 253-266, April.
    3. 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.
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    More about this item

    Keywords

    technology gap; gravity model; panel data; semi-mixed effects; PPML;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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