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Exploring the factors driving automotive exports in OECD countries

  • Jochem, Patrick
  • Schleich, Joachim

Based on data for eight OECD countries this paper empirically explores the factors driving exports in the automotive sector between 1991 and 2008. The factors considered explicitly account for possible lead market effects which have recently been identified in the literature as relevant factors in studying the export potentials of certain technologies. Econometric results suggest that exports in the automotive sector are positively related to the general strength of a country in terms of exports, to higher GDP per capita and to a lower labour cost share in the automotive sector. However, domestic market size and R&D in the automotive sector appear to have no effect on exports. Hence, the results provide only limited rationale for policy intervention.

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Paper provided by Fraunhofer Institute for Systems and Innovation Research (ISI) in its series Working Papers "Sustainability and Innovation" with number S4/2011.

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Date of creation: 2011
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Handle: RePEc:zbw:fisisi:s42011
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  1. Lachenmaier, Stefan & Wößmann, Ludger, 2006. "Does innovation cause exports? Evidence from exogenous innovation impulses and obstacles using German micro data," Munich Reprints in Economics 19482, University of Munich, Department of Economics.
  2. Helpman, Elhanan, 1981. "International trade in the presence of product differentiation, economies of scale and monopolistic competition : A Chamberlin-Heckscher-Ohlin approach," Journal of International Economics, Elsevier, vol. 11(3), pages 305-340, August.
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  7. Beise, Marian & Cleff, Thomas, 2004. "Assessing the lead market potential of countries for innovation projects," Journal of International Management, Elsevier, vol. 10(4), pages 453-477.
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  12. Rennings, Klaus & Beise, Marian, 2003. "Lead Markets of Environmental Innovations: A Framework for Innovation and Environmental Economics," ZEW Discussion Papers 03-01, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  13. Krugman, Paul, 1979. "A Model of Innovation, Technology Transfer, and the World Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 253-66, April.
  14. Vernon, Raymond, 1979. "The Product Cycle Hypothesis in a New International Environment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 41(4), pages 255-67, November.
  15. Gene M. Grossman & Elhanan Helpman, 1994. "Endogenous Innovation in the Theory of Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 23-44, Winter.
  16. Fagerberg, Jan, 1987. "A technology gap approach to why growth rates differ," Research Policy, Elsevier, vol. 16(2-4), pages 87-99, August.
  17. H. Gray, 1980. "The theory of international trade among industrial Nations," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 116(3), pages 447-470, September.
  18. Antoine Magnier & Joël Toujas-Bernate, 1994. "Technology and trade: Empirical evidences for the major five industrialized countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(3), pages 494-520, September.
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