The effect of technological innovation on international trade: a nonlinear approach
This paper focuses on the relationship between technological innovation and international trade. In particular, the effect of technological achievement on exports is studied. In order to measure technological innovation, the technological achievement index (TAI) is used, thus providing a summary of a society's technological achievements and allowing countries to be classified into four groups according to their level of technological innovation: Leaders, Potential Leaders, Dynamic Adopters and Marginalised. The effect of technological variables on sectoral exports is analysed using a gravity model of trade. The existence of a possible non-linear relationship is also investigated, since the effect of improved technological innovation on trade could vary according to the technological achievement in countries. Results show the expected positive effect of technological innovation on export performance and the existence of non-linearities is confirmed. A U-shaped relationship is found between exports and creation of technology and between exports and diffusion of old innovations, whereas an invertedU-shaped relationship is found between exports and diffusion of recent innovations and between exports and human skills.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +49 431 8814-1
Fax: +49 431 8814528
Web page: http://www.economics-ejournal.org/Email:
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Santos Silva, J.M.C & Tenreyro, Silvana, 2005.
"The Log of Gravity,"
CEPR Discussion Papers
5311, C.E.P.R. Discussion Papers.
- Joao Santos Silva & Silvana Tenreyro, 2005. "The Log of Gravity," CEP Discussion Papers dp0701, Centre for Economic Performance, LSE.
- Joao Santos Silva & Silvana Tenreyro, 2005. "The log of gravity," LSE Research Online Documents on Economics 3744, London School of Economics and Political Science, LSE Library.
- Patrik Gustavsson Tingvall & Andreas Poldahl, 2006.
"Is there really an inverted U-shaped relation between competition and R&D?,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 15(3), pages 101-118.
- Patrik Gustavsson Tingvall & Andreas Poldahl, 2006. "Is there really an inverted U-shaped relation between competition and R&D?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(2), pages 101-118.
- Gustavsson Tingvall, Patrik & Poldahl, Andreas, 2005. "Is There Really an Inverted U-shaped Relation Between Competition and R&D?," EIJS Working Paper Series 207, The European Institute of Japanese Studies.
- Poldahl, Andreas & Gustavsson Tingvall, Patrik, 2005. "Is There Really an Inverted U-shaped Relation Between Competition and R&D?," Working Paper Series 204, Trade Union Institute for Economic Research.
- Rauch, James E., 1999.
"Networks versus markets in international trade,"
Journal of International Economics,
Elsevier, vol. 48(1), pages 7-35, June.
- Alan Deardorff, 1998.
"Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?,"
in: The Regionalization of the World Economy, pages 7-32
National Bureau of Economic Research, Inc.
- Alan V. Deardorff, 1995. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," NBER Working Papers 5377, National Bureau of Economic Research, Inc.
- Deardorff, A.V., 1995. "Determinants of Bilateral Trade : Does Gravity Work in a Neoclassical World?," Papers 95-05, Michigan - Center for Research on Economic & Social Theory.
- Fink, Carsten & Mattoo, Aaditya & Neagu, Ileana Cristina, 2002.
"Assessing the impact of communication costs on international trade,"
Policy Research Working Paper Series
2929, The World Bank.
- Fink, Carsten & Mattoo, Aaditya & Neagu, Ileana Cristina, 2005. "Assessing the impact of communication costs on international trade," Journal of International Economics, Elsevier, vol. 67(2), pages 428-445, December.
- Robert C. Feenstra & Robert E. Lipsey & Haiyan Deng & Alyson C. Ma & Hengyong Mo, 2005. "World Trade Flows: 1962-2000," NBER Working Papers 11040, National Bureau of Economic Research, Inc.
- Loungani, Prakash & Mody, Ashoka & Razin, Assaf, 2002. "The Global Disconnect: The Role of Transactional Distance and Scale Economies in Gravity Equations," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 526-43, December.
- Jonathan Eaton & Samuel Kortum, 1997.
"Technology and Bilateral Trade,"
Boston University - Institute for Economic Development
79, Boston University, Institute for Economic Development.
- Jan Fagerberg, 1996. "Competitiveness, Scale and R&D," Working Papers Archives 1996545, Centre for Technology, Innovation and Culture, University of Oslo.
- Tang, Linghui, 2006. "What accounts for the growth of trade in differentiated goods: Economic causes or technological imperatives?," Economics Letters, Elsevier, vol. 91(2), pages 204-209, May.
When requesting a correction, please mention this item's handle: RePEc:zbw:ifwedp:7588. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.