Technological Specialization and Convergence of Small Countries: The Case of the Late-industrializing Asian NIEs
This paper examines the changing pattern of technological specialization of the four small, newly industrializing economies (NIEs) from East Asia as they move up the economic development ladder. In addition, the paper also investigates whether there is convergence or divergence between these NIEs and two reference groups of advanced economies -- eight small, advanced European countries and the G7. We find that the East Asian NIEs had a higher degree of technological concentration than both the group of 8 advanced small European economies and the group of G7 countries, although the differences had narrowed over time. The East Asian NIEs’ technological specialization pattern has also been diverging from those of the small advanced European countries, while converging among themselves (as well as towards the G7 until recently).
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