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Can countries create comparative advantages? R&D expenditures, high-tech exports and country size in 19 OECD countries, 1981-1999

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  • Pontus Braunerhjelm
  • Per Thulin

Abstract

This paper analyses how increased R&D expenditures and market size influence the distribution of comparative advantage. Previous studies report ambiguous results and also refer to periods when markets where much more segmented and production factors less mobile. The empirical analysis comprises 19 OECD-countries and spans the period 1981 to 1999. It is shown how an increase in R&D-expenditures by one percentage point implies a three-percentage point increase in high-technology exports, whereas market size fails to attain significance. In addition, institutional factors influence the dynamics of comparative advantage.

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  • Pontus Braunerhjelm & Per Thulin, 2008. "Can countries create comparative advantages? R&D expenditures, high-tech exports and country size in 19 OECD countries, 1981-1999," International Economic Journal, Taylor & Francis Journals, vol. 22(1), pages 95-111.
  • Handle: RePEc:taf:intecj:v:22:y:2008:i:1:p:95-111
    DOI: 10.1080/10168730801887026
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    Cited by:

    1. Edinaldo Tebaldi, 2011. "The Determinants of High-Technology Exports: A Panel Data Analysis," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 39(4), pages 343-353, December.
    2. Armando Garcia Pires, 2014. "Beyond Trade Costs: Firms’ Endogenous Access to International Markets," Journal of Industry, Competition and Trade, Springer, vol. 14(2), pages 229-257, June.
    3. Klimis Vogiatzoglou, 2009. "Determinants of Export Specialization in ICT Products: A Cross-Country Analysis," Working Papers 2009.3, International Network for Economic Research - INFER.

    More about this item

    Keywords

    dynamic comparative advantage; R&D; market size; institutions;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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