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Trade and the impact of innovations and standards: the case of Germany and the UK

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  • Knut Blind
  • Andre Jungmittag

Abstract

The effects of patents as indicators for innovations and standards on German trade performance are analysed in general and German-British trade in detail. The latter analysis goes a step further than the approach of Swann et al. (1996) and is based on a broader and more detailed database. The results show that Germany's export performance can primarily be explained by its innovative capacity and only to a small extent by its strength in standards. Furthermore, the results underscore the common view of the trade-fostering effect of international standards, while 'idiosyncratic' standards have ambiguous effects on exports.

Suggested Citation

  • Knut Blind & Andre Jungmittag, 2005. "Trade and the impact of innovations and standards: the case of Germany and the UK," Applied Economics, Taylor & Francis Journals, vol. 37(12), pages 1385-1398.
  • Handle: RePEc:taf:applec:v:37:y:2005:i:12:p:1385-1398
    DOI: 10.1080/13504850500143294
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    References listed on IDEAS

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    1. Maskus, Keith E. & Wilson, John S. & Tsunehiro Otsuki, 2000. "Quantifying the impact of technical barriers to trade : a framework for analysis," Policy Research Working Paper Series 2512, The World Bank.
    2. Antonelli, Cristiano, 1994. "Localized technological change and the evolution of standards as economic institutions," Information Economics and Policy, Elsevier, vol. 6(3-4), pages 195-216, December.
    3. Swann, Peter & Temple, Paul & Shurmer, Mark, 1996. "Standards and Trade Performance: The UK Experience," Economic Journal, Royal Economic Society, vol. 106(438), pages 1297-1313, September.
    4. Greenhalgh, Christine, 1990. "Innovation and Trade Performance in the United Kingdom," Economic Journal, Royal Economic Society, vol. 100(400), pages 105-118, Supplemen.
    5. Elhanan Helpman, 1998. "Explaining the structure of foreign trade: Where do we stand?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(4), pages 573-589, December.
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    Citations

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    Cited by:

    1. Knut Blind, 2010. "The Role of Standards for Trade in Services: Hypotheses and First Insights," Chapters,in: The Handbook of Innovation and Services, chapter 22 Edward Elgar Publishing.
    2. Kareem, Olayinka Idowu, 2016. "Food safety regulations and fish trade: Evidence from European Union-Africa trade relations," Journal of Commodity Markets, Elsevier, vol. 2(1), pages 18-25.
    3. Knut Blind & Andre Jungmittag, 2008. "The impact of patents and standards on macroeconomic growth: a panel approach covering four countries and 12 sectors," Journal of Productivity Analysis, Springer, vol. 29(1), pages 51-60, February.
    4. Maria Cipollina & Federica Demaria & Filomena Pietrovito, 2016. "Determinants of Trade: the Role of Innovation in Presence of Quality Standards," Journal of Industry, Competition and Trade, Springer, vol. 16(4), pages 455-475, December.
    5. J. Luis Guasch & Jean-Louis Racine & Isabel Sánchez & Makhtar Diop, 2007. "Quality Systems and Standards for a Competitive Edge," World Bank Publications, The World Bank, number 6768, August.
    6. Chen, Natalie & Novy, Dennis, 2012. "On the measurement of trade costs: direct vs. indirect approaches to quantifying standards and technical regulations," World Trade Review, Cambridge University Press, vol. 11(03), pages 401-414, July.
    7. MILEA, Camelia, 2015. "Connections Between Foreign Direct Investments And Research-Developmentinnovation Activity," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 19(1), pages 102-120.
    8. repec:wsi:wschap:9789813144415_0004 is not listed on IDEAS
    9. Yuan Li & John C. Beghin, 2017. "A meta-analysis of estimates of the impact of technical barriers to trade," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 4, pages 63-77 World Scientific Publishing Co. Pte. Ltd..
    10. Alexandre Almeida & Aurora A.C. Teixeira, 2007. "Does Patenting negatively impact on R&D investment?An international panel data assessment," FEP Working Papers 255, Universidade do Porto, Faculdade de Economia do Porto.
    11. TAMURA Suguru, 2015. "What Decides the Lifespan of Standardized Technologies? The first look at de jure standards in Japan," Policy Discussion Papers 15012, Research Institute of Economy, Trade and Industry (RIETI).
    12. Graz Jean-Christophe & Hauert Christophe, 2014. "Beyond the transatlantic divide: the multiple authorities of standards in the global political economy of services," Business and Politics, De Gruyter, vol. 16(1), pages 113-150, April.
    13. Olper, Alessandro & Curzi, Daniele & Pacca, Lucia, 2014. "Do food standards affect the quality of EU imports?," Economics Letters, Elsevier, vol. 122(2), pages 233-237.
    14. M. Choudhary & Paul Temple & Lei Zhao, 2013. "Taking the measure of things: the role of measurement in EU trade," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 40(1), pages 75-109, February.
    15. Bo Xiong & John C. Beghin, 2017. "Stringent Maximum Residue Limits, Protectionism, and Competitiveness: The Cases of the US and Canada," World Scientific Book Chapters,in: Nontariff Measures and International Trade, chapter 12, pages 193-207 World Scientific Publishing Co. Pte. Ltd..
    16. repec:spr:scient:v:74:y:2008:i:1:d:10.1007_s11192-008-0105-4 is not listed on IDEAS
    17. DeMaria, Federica & Franco, Chiara & Solferino, Nazaria, 2015. "Corruption and innovation: the mediating role of trade," AICCON Working Papers 139-2015, Associazione Italiana per la Cultura della Cooperazione e del Non Profit.
    18. TAMURA Suguru, 2017. "Empirical Analysis: Technological character, type of function, and longevity of standardized knowledge," Policy Discussion Papers 17007, Research Institute of Economy, Trade and Industry (RIETI).
    19. Anders, Sven M. & Caswell, Julie A., 2006. "Assessing the Impact of Stricter Food Safety Standards on Trade: HACCP in U.S. Seafood Trade with the Developing World," 2006 Annual meeting, July 23-26, Long Beach, CA 21338, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. Sven M. Anders & Julie A. Caswell, 2007. "Standards as Barriers Versus Standards as Catalysts: Assessing the Impact of HACCP Implementation on U.S. Seafood Imports," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(2), pages 310-321.
    21. Mangelsdorf, Axel & Portugal-Perez, Alberto & Wilson, John S., 2012. "Food standards and exports: evidence for China," World Trade Review, Cambridge University Press, vol. 11(03), pages 507-526, July.
    22. TAMURA Suguru, 2014. "The Dynamics and Determinants of De Jure Standards: Evidence from the electronic and electrical engineering industries," Policy Discussion Papers 14020, Research Institute of Economy, Trade and Industry (RIETI).
    23. repec:spr:scient:v:96:y:2013:i:1:d:10.1007_s11192-012-0870-y is not listed on IDEAS
    24. World Bank, 2008. "Bulgaria - Investment Climate Assessment : Volume 2. Detailed Report," World Bank Other Operational Studies 7868, The World Bank.

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