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Technological convergence, competitiveness, and welfare: A study of international manufacturing industries

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  • Jun Ruan
  • Munisamy Gopinath

Abstract

In this study, a monopolistic competition model is used to investigate the effects of international technological convergence on factor rewards, output composition, and welfare. Four testable hypotheses on the impact of technological convergence on follower's and leader's competitiveness and welfare are presented. We then use 1993-2001 data from 128 manufacturing industries in 35 countries to test these hypotheses. Results show that followers' relative wages and global value-added shares increase with technological convergence. Followers benefit from convergence's positive income effect. Leader's own technological progress is the key to its welfare improvement, while terms-of-trade effects appear less important.

Suggested Citation

  • Jun Ruan & Munisamy Gopinath, 2010. "Technological convergence, competitiveness, and welfare: A study of international manufacturing industries," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 19(4), pages 517-551.
    • Handle: RePEc:taf:jitecd:v:19:y:2010:i:4:p:517-551
    DOI: 10.1080/09638199.2010.506331
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    Cited by:

    1. Syed Tehseen Jawaid & Mariya Ahmad Qureshi & Samra Ali, 2021. "Does immiserizing growth exist? Evidence from world’s top trading nations," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing Limited, vol. 14(2), pages 124-148, January.
    2. Jayson Beckman & Munisamy Gopinath & Kamron Daugherty, 2021. "Options for ASEAN trade expansion: Within, plus three or six, European Union or the United States?," The World Economy, Wiley Blackwell, vol. 44(5), pages 1177-1204, May.
    3. Wenjing Zhu & Bohong Ma & Lele Kang, 2022. "Technology convergence among various technical fields: improvement of entropy estimation in patent analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(12), pages 7731-7750, December.

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