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Technological Revolutions, Innovations, and Trade Performance

Author

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  • Jakob B. Madsen

    (Institute of Economics, University of Copenhagen)

Abstract

This paper addresses two puzzles in international trade, namely why traditional estimates of income elasticities of exports are implausibly high and why the export growth varies much more markedly across countries than can be explained by price competitiveness and variations in income in export markets. Using data for 18 OECD countries it is shown that integration, the level of technology and the technological competitive position can, to a large degree, explain these two puzzles.

Suggested Citation

  • Jakob B. Madsen, 2004. "Technological Revolutions, Innovations, and Trade Performance," EPRU Working Paper Series 04-12, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
  • Handle: RePEc:kud:epruwp:04-12
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    File URL: http://www.econ.ku.dk/epru/files/wp/wp-04-12.pdf
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    References listed on IDEAS

    as
    1. Krugman, Paul, 1983. "New Theories of Trade among Industrial Countries," American Economic Review, American Economic Association, vol. 73(2), pages 343-347, May.
    2. M. Ishaq Nadiri, 1993. "Innovations and Technological Spillovers," NBER Working Papers 4423, National Bureau of Economic Research, Inc.
    3. Fagerberg, Jan, 1996. "Technology and Competitiveness," Oxford Review of Economic Policy, Oxford University Press, vol. 12(3), pages 39-51, Autumn.
    4. Greenhalgh, Christine, 1990. "Innovation and Trade Performance in the United Kingdom," Economic Journal, Royal Economic Society, vol. 100(400), pages 105-118, Supplemen.
    5. Jan Fagerberg, 1996. "Competitiveness, Scale and R&D," Working Papers Archives 1996545, Centre for Technology, Innovation and Culture, University of Oslo.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    technology; external patents; product variety; trade; ICT revolution;

    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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