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Technology, investment and trade: empirical evidence for five Asia-Pacific countries

  • Gary Madden
  • Scott Savage
  • Su Yin Thong

Traditional models of international trade flows find that prices explain significant growth in export market shares. In the new international trade theory nonprice factors are seen to be of great importance for the explanation of trade. Following Magnier and Toujas-Bernate (Weltwirtschaftliches Archiv., 130, 1994), this study introduces nonprice factors, namely gross fixed investment and technology (number of patents accepted), into the export market share equation. Empirical estimation is carried out on five Asia-Pacific countries for the period 1978 to 1993. Results are similar to those of Magnier and Toujas-Bernate (1994) for the OECD, which show that nonprice factors have played an important role in determining export market share during the last decade.

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Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 6 (1999)
Issue (Month): 6 ()
Pages: 361-363

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Handle: RePEc:taf:apeclt:v:6:y:1999:i:6:p:361-363
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