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Can Countries Create Comparative Advantages? R&D-expenditures, high-tech exports and country size in 19 OECD-countries, 1981-1999

  • Braunerhjelm, Pontus

    ()

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

  • Thulin, Per

    ()

    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

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 comprise 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. Also institutional factors influence the dynamics of comparative advantage

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Paper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 61.

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Length: 31 pages
Date of creation: 04 May 2006
Date of revision:
Publication status: Published as Braunerhjelm, Pontus and Per Thulin, 'Can Countries Create Comparative Advantages? R&D-expenditures, high-tech exports and country size in 19 OECD-countries, 1981-1999' in International Economic Journal, 2008, pages 95-111.
Handle: RePEc:hhs:cesisp:0061
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CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden

Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/

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