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Export performance of the Asian miracle economies: The role of innovation and product variety

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  • James B. Ang
  • Jakob B. Madsen
  • Peter E. Robertson

Abstract

Traditional export models fall short of explaining the marked increase in exports of the Asian miracle economies in the post‐WWII period. A model showing that exports are driven by innovations, innovative competitiveness, demand and price competitiveness is estimated for China, India, Korea, Japan, Singapore and Taiwan over the period 1953–2010. The results demonstrate that innovation stocks and competitiveness are important determinants behind their success. Furthermore, innovation stocks and innovative competitiveness are shown to be less influential for export growth in China and India and their export booms have been fuelled by process rather than product innovation. Performance des exportations dans les miraculeuses économies asiatiques: le rôle de l'innovation et de la variété des produits. Les modèles traditionnels d'exportation n'arrivent pas à expliquer l'accroissement marqué des exportations des miraculeuses économies asiatiques dans l'après Seconde guerre mondiale. On calibre un modèle montrant que les exportations sont portées par les innovations, la compétitivité dans l'innovation, la demande, et la concurrence par les prix pour la Chine, l'Inde, la Corée, le Japon, Singapour et Taiwan pour la période 1953–2012. Les résultats montrent que les stocks d'innovation et la compétitivité dans l'innovation sont des déterminants importants de ces succès. De plus ces deux facteurs semblent moins cruciaux pour la croissance des exportations de la Chine et de l'Inde, dont les booms d'exportation semblent plutôt alimentés par des innovations de processus plutôt que des innovations de produits.

Suggested Citation

  • James B. Ang & Jakob B. Madsen & Peter E. Robertson, 2015. "Export performance of the Asian miracle economies: The role of innovation and product variety," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(1), pages 273-309, February.
    • Handle: RePEc:wly:canjec:v:48:y:2015:i:1:p:273-309
    DOI: 10.1111/caje.12125
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    2. Luqman, Muhammad & Khan, Karim, 2022. "Does Innovation Affect Intensive and Extensive Margins of Exports? A Firm-Level Analysis," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 47(3), pages 125-145, September.
    3. P. Niluka S. P. Ekanayake & Jakob B. Madsen & Tushar Bharati, 2023. "Trade and economic growth: Does the sophistication of traded goods matter?," Journal of Economic Growth, Springer, vol. 28(4), pages 481-524, December.
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    5. Bottega, Ana & Romero, João P., 2021. "Innovation, export performance and trade elasticities across different sectors," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 174-184.

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