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International Competitiveness

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  • Jan Fagerberg

    (Centre for Technology, Innovation and Culture, University of Oslo)

Abstract

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.

Suggested Citation

  • Jan Fagerberg, 1988. "International Competitiveness," Working Papers Archives 1988001, Centre for Technology, Innovation and Culture, University of Oslo.
    • Handle: RePEc:tik:wparch:1988001
    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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    File URL: http://www.tik.uio.no/InnoWP/archive/wpno001-1988.pdf
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    References listed on IDEAS

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    1. 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.
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    4. Kellman, M, 1983. "Relative Prices and International Competitiveness: An Empirical Investigation," Empirical Economics, Springer, vol. 8(3-4), pages 125-138.
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    7. Nerlove, Marc, 1971. "Further Evidence on the Estimation of Dynamic Economic Relations from a Time Series of Cross Sections," Econometrica, Econometric Society, vol. 39(2), pages 359-382, March.
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