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International Trade, Technological Innovation And Income: A Gravity Model Approach

  • Inmaculada Martínez Zarzoso

    ()

    (Universitat Jaume I)

  • Laura Márquez Ramos

    (Universitat Jaume I)

In this research, we estimate a gravity equation augmented with technological innovation and transport infrastructure variables in order to analyse the impact of these variables on international trade. According to our results, investing in transport infrastructure and technological innovation leads to the improvement and maintenance of the level of competitiveness. Moreover, our results support the hypothesis that countries tend to trade more when they are ¿closer¿ from a technological point of view and that the development of information technology has lowered the effect of geography on trade. En este trabajo, estimamos un modelo de gravedad ampliado con variables de innovación tecnológica y de infraestructura de transporte con el fin de analizar el impacto de estas variables sobre el comercio internacional. Según los resultados obtenidos, invertir en infraestructuras de transporte y en innovación tecnológica mejora y mantiene los niveles de competitividad alcanzados en los países. Nuestros resultados, también apoyan la hipótesis de que los países comercian más cuanto más similares son desde un punto de vista tecnológico y que el desarrollo de las tecnologías de la información ha reducido el efecto negativo de la distancia geográfica sobre el comercio internacional.

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File URL: http://www.ivie.es/downloads/docs/wpasec/wpasec-2005-15.pdf
File Function: Fisrt version / Primera version, 2005
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Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 2005-15.

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Length: 32 pages
Date of creation: May 2005
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasec:2005-15
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  1. Lachenmaier, Stefan & Wößmann, Ludger, 2006. "Does innovation cause exports? Evidence from exogenous innovation impulses and obstacles using German micro data," Munich Reprints in Economics 19482, University of Munich, Department of Economics.
  2. James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
  3. Daniele Archibugi & Alberto Coco, 2004. "A New Indicator of Technological Capabilities for Developed and Developing Countries (ArCo)," CEIS Research Paper 44, Tor Vergata University, CEIS.
  4. Stefan Lachenmaier & Ludger Woessmann, 2004. "Does Innovation Cause Exports? Evidence from Exogenous Innovation Impulses and Obstacles," CESifo Working Paper Series 1178, CESifo Group Munich.
  5. Jonathan Eaton & Samuel Kortum, 1997. "Technology and Bilateral Trade," Boston University - Institute for Economic Development 79, Boston University, Institute for Economic Development.
  6. Irwin, Douglas A. & Tervio, Marko, 2002. "Does trade raise income?: Evidence from the twentieth century," Journal of International Economics, Elsevier, vol. 58(1), pages 1-18, October.
  7. Freund, Caroline L. & Weinhold, Diana, 2004. "The effect of the Internet on international trade," Journal of International Economics, Elsevier, vol. 62(1), pages 171-189, January.
  8. Alan Deardorff, 1998. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," NBER Chapters, in: The Regionalization of the World Economy, pages 7-32 National Bureau of Economic Research, Inc.
  9. Robert W. Fogel, 1999. "Catching Up with the Economy," American Economic Review, American Economic Association, vol. 89(1), pages 1-21, March.
  10. Wong, Wei-Kang, 2004. "How good are trade and telephone call traffic in bridging income gaps and TFP gaps?," Journal of International Economics, Elsevier, vol. 64(2), pages 441-463, December.
  11. Bougheas, Spiros & Demetriades, Panicos O. & Morgenroth, Edgar L. W., 1999. "Infrastructure, transport costs and trade," Journal of International Economics, Elsevier, vol. 47(1), pages 169-189, February.
  12. Filippini, Carlo & Molini, Vasco, 2003. "The determinants of East Asian trade flows: a gravity equation approach," Journal of Asian Economics, Elsevier, vol. 14(5), pages 695-711, October.
  13. David H. Romer & Jeffrey A. Frankel, 1999. "Does Trade Cause Growth?," American Economic Review, American Economic Association, vol. 89(3), pages 379-399, June.
  14. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, March.
  15. Jonathan Eaton & Samuel Kortum, 2002. "Technology, Geography, and Trade," Econometrica, Econometric Society, vol. 70(5), pages 1741-1779, September.
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