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Technological competition and trade performance

Author

Listed:
  • M. Landesmann
  • M. Pfaffermayr

Abstract

This paper estimates a demand system for OECD exports differentiated by country of origin for two ISIC industries (non-electrical machinery, electrical machinery) and for total manufacturing exports. It develops a generalized form of the AIDS demand system in which research and development (R&D) effort enters in a number of ways to affect a particular supplier's competitiveness: R&D activity relative to competitors affects, on the one hand, relative cost competitiveness and, on the other hand, the producer's position in the quality spectrum of products offered on international markets. One of the interesting insights gained from the study is that 'effectiveness' of R&D effort can differ much across different economies. It is conjectured that a country's position in an international catching-up process may be partly responsible for such differences as well as labour market dynamics which link increased labour costs to cost- and quality-improvements.

Suggested Citation

  • M. Landesmann & M. Pfaffermayr, 1997. "Technological competition and trade performance," Applied Economics, Taylor & Francis Journals, vol. 29(2), pages 179-196.
  • Handle: RePEc:taf:applec:v:29:y:1997:i:2:p:179-196
    DOI: 10.1080/000368497327254
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    References listed on IDEAS

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    1. Winters, L. Alan, 1994. "The Liberalization of European Steel Trade," CEPR Discussion Papers 1002, C.E.P.R. Discussion Papers.
    2. Winters, L. Alan, 1992. "Integration, Trade Policy and European Footwear Trade," CEPR Discussion Papers 679, C.E.P.R. Discussion Papers.
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    Citations

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    Cited by:

    1. Friedrich Schneider & Alexander F. Wagner & Mathias Dufour, 2003. "Satisfaction not guaranteed-Institutions and satisfaction with democracy in Western Europe," Economics working papers 2003-03, Department of Economics, Johannes Kepler University Linz, Austria.
    2. Gary Madden & Scott Savage & Su Yin Thong, 1999. "Technology, investment and trade: empirical evidence for five Asia-Pacific countries," Applied Economics Letters, Taylor & Francis Journals, vol. 6(6), pages 361-363.
    3. Sarah Guillou, 2006. "Competitiveness and export market shares in high tech industries in the US and the EMU countries: A comparative study," Sciences Po publications 2006-18, Sciences Po.
    4. Sarah Guillou, 2006. "Les industries de haute technologie de la zone euro et des États-Unis. Une étude comparée de la compétitivité et des parts de marché," Revue de l'OFCE, Presses de Sciences-Po, vol. 98(3), pages 37-76.
    5. Sonia Mukherjee, "undated". "The Role of Services in Enhancing Indian Manufacturing Exports: A Firm Level Analysis, 2000-01 to 2011-12," Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi Discussion Papers 15-08, Centre for International Trade and Development, Jawaharlal Nehru University, New Delhi, India.
    6. Dario Guarascio & Mario Pianta & Francesco Bogliacino, 2016. "Export, R&D and new products. a model and a test on European industries," Journal of Evolutionary Economics, Springer, vol. 26(4), pages 869-905, October.
    7. repec:kap:iaecre:v:6:y:2000:i:4:p:597-618 is not listed on IDEAS
    8. Michael Böheim, 2000. "Benchmarking of Economic Framework Conditions at Company Level," WIFO Monatsberichte (monthly reports), WIFO, vol. 73(11), pages 689-698, November.
    9. Sara Bercenilla Visús & Mª Dolores Montávez Garcés, 2000. "La Competitividad Externa De Las Manufacturas Españolas: Un Análisis Dinámico Para El Período 1973-1993," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0008, Departamento de Economía - Universidad Pública de Navarra.
    10. Friedrich Schneider & Alexander F. Wagner, 2003. "Tradeable permits - Ten key design issues," Economics working papers 2003-04, Department of Economics, Johannes Kepler University Linz, Austria.
    11. repec:spo:wpecon:info:hdl:2441/7305 is not listed on IDEAS
    12. Friedrich Schneider & Kausik Chaudhuri & Sumana Chatterjee, 2003. "The Size and Development of the Indian Shadow Economy and a Comparison with other 18 Asian Countries: An Empirical Investigation," Economics working papers 2003-02, Department of Economics, Johannes Kepler University Linz, Austria.
    13. Yvonne Wolfmayr, 2008. "Producer Services and Competitiveness of Manufacturing Exports," FIW Research Reports series I-009, FIW.
    14. Dosi, Giovanni & Grazzi, Marco & Moschella, Daniele, 2015. "Technology and costs in international competitiveness: From countries and sectors to firms," Research Policy, Elsevier, vol. 44(10), pages 1795-1814.
    15. repec:spo:wpecon:info:hdl:2441/941 is not listed on IDEAS
    16. Inés Granda & Antonio Fonfría, 2009. "Technology and economic inequality effects on international trade," Working Papers del Instituto Complutense de Estudios Internacionales 0902, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.
    17. Sara Barcenilla-Visús & Carmen López-Pueyo, 2000. "Macroeconomic competitiveness in the Europe of the Twelve: An application to 1969–93," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 6(4), pages 597-618, November.
    18. repec:ucm:wpaper:02-09 is not listed on IDEAS

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