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Technological Convergence and Trade Patterns

  • Robert Stehrer

    ()

    (The Vienna Institute for International Economic Studies, wiiw)

  • Julia Wörz

Casual evidence suggests that emerging and developing countries are often gaining market shares in world exports in technology-intensive sectors in the course of development. On the other hand textbook trade theory would suggest that these countries specialize in lower-tech industries. The reason for this is the assumption that the technology gap in these industries is lower and thus under the further assumption of equal wage rates across industries the developing countries have a comparative advantage in the lower-tech industries. In this paper we take a dynamic view on development and trade integration and distinguish three types of catching-up processes (the 'continuous convergence approach', the 'climbing up the ladder approach' and the 'jumping-up approach'). Using data for 25 countries and 32 industries we empirically analyse the different patterns of catching up over the period from 1981 to 1997. Further we discuss linkages between technological convergence, dynamics of comparative advantage and trade patterns.

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Paper provided by The Vienna Institute for International Economic Studies, wiiw in its series wiiw Working Papers with number 19.

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Date of creation: Oct 2001
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Publication status: Published as wiiw Working Paper
Handle: RePEc:wii:wpaper:19
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  1. Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-74, June.
  2. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers dp0280, Centre for Economic Performance, LSE.
  3. Quah, Danny, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEPR Discussion Papers 1355, C.E.P.R. Discussion Papers.
  4. Grupp, Hariolf, 1994. "The measurement of technical performance of innovations by technometrics and its impact on established technology indicators," Research Policy, Elsevier, vol. 23(2), pages 175-193, March.
  5. Bernard, Andrew B & Jones, Charles I, 1996. "Technology and Convergence," Economic Journal, Royal Economic Society, vol. 106(437), pages 1037-44, July.
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