This paper develops and tests a model of differing trends in international competitiveness and economic growth across countries. The model relates the development of market shares at home and abroad to three sets of factors: the ability to compete in technology, the ability to compete in delivery(capacity) and the ability to compete in price. The test, using data for 15 OECD countries for the period 1961-1983, shows that in the medium and long run, factors related to technology and capacity are very important for market shares and growth, while price- or cost competitiveness plays a more limited role than often assumed. These results are shown to be consistent with earlier findings by Kaldor and others of a "perverse" (positive) relation between export performance and growth in relative prices or costs.
|Date of creation:||Jun 1988|
|Note:||This is the accepted version of ÒFagerberg, J. 1988 International competitiveness, Economic Journal, Vol. 98, No. 391, June 1988, pp. 355-374Ó, which is available in final form at http://www.jstor.org/stable/223337.|
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- Fagerberg, Jan, 1987.
"A technology gap approach to why growth rates differ,"
Elsevier, vol. 16(2-4), pages 87-99, August.
- Jan Fagerberg, 1987. "A technology gap approach to why growth rates differ," Working Papers Archives 1987002, Centre for Technology, Innovation and Culture, University of Oslo.
- Kellman, M, 1983. "Relative Prices and International Competitiveness: An Empirical Investigation," Empirical Economics, Springer, vol. 8(3-4), pages 125-138.
- Anthony P. Thirlwall, 2011. "The Balance of Payments Constraint as an Explanation of International Growth Rate Differences," PSL Quarterly Review, Economia civile, vol. 64(259), pages 429-438.
- Anthony Philip Thirlwall, 1979. "The Balance of Payments Constraint as an Explanation of International Growth Rate Differences," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 32(128), pages 45-53.
- Anthony Philip Thirlwall, 1979. "The Balance of Payments Constraint as an Explanation of International Growth Rate Differences," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 32(128), pages 45-53.
- Ã…dne Cappelen & Nils Petter Gleditsch & Olav Bjerkholt, 1984. "Military Spending and Economic Growth in the OECD Countries," Journal of Peace Research, Peace Research Institute Oslo, vol. 21(4), pages 361-373, December.
- Smith, R P, 1977. "Military Expenditure and Capitalism," Cambridge Journal of Economics, Oxford University Press, vol. 1(1), pages 61-76, March.
- Houthakker, Hendrik S & Magee, Stephen P, 1969. "Income and Price Elasticities in World Trade," The Review of Economics and Statistics, MIT Press, vol. 51(2), pages 111-125, May. Full references (including those not matched with items on IDEAS)
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