Industrial Diversity, Trade Patterns and Productivity Convergence
By: Wörz, Julia.
Contributor(s): Stehrer, Robert.
Material type: BookSeries: wiiw Working Papers: 23Publisher: Wien : Wiener Institut für Internationale Wirtschaftsvergleiche (wiiw), 2002Description: S., 30cm.Subject(s): trade and technology | unit root tests | patterns of catching-upCountries covered: non specificwiiw Research Areas: International Trade, Competitiveness and FDIClassification: C22 | C23 | F14 | L6 | O14 | O33 | O41 Online resources: Click here to access online Summary: Recent developments in economic integration show rather diverse patterns of integration into the world economy. Some countries are remaining in the low-tech industries whereas other countries succeed in becoming competitive also in high-tech industries. In this paper we postulate that positioning oneself at the lower end in the spectrum of high-tech industries is more favourable to a country's long-term development than aiming at the upper end of low-tech industries. We argue that countries which specialize in the lower end of the medium-high-tech activities are rewarded by faster productivity increases also in the upper end of the high-tech industries. In contrast, early specialization in medium-low-tech branches yields positive spillovers mainly in the low-tech sector, which is not promotive to catching-up in high-tech industries. We sketch a theoretical outline of this idea and present econometric results including four aggregate manufacturing branches and 37 countries. In the econometric analysis we also include trade and FDI variables.Item type | Current library | Call number | Status | Date due | Barcode | |
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Paper | WIIW Library | 5.700/23 (Browse shelf(Opens below)) | Available | 1000010000522 |
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Recent developments in economic integration show rather diverse patterns of integration into the world economy. Some countries are remaining in the low-tech industries whereas other countries succeed in becoming competitive also in high-tech industries. In this paper we postulate that positioning oneself at the lower end in the spectrum of high-tech industries is more favourable to a country's long-term development than aiming at the upper end of low-tech industries. We argue that countries which specialize in the lower end of the medium-high-tech activities are rewarded by faster productivity increases also in the upper end of the high-tech industries. In contrast, early specialization in medium-low-tech branches yields positive spillovers mainly in the low-tech sector, which is not promotive to catching-up in high-tech industries. We sketch a theoretical outline of this idea and present econometric results including four aggregate manufacturing branches and 37 countries. In the econometric analysis we also include trade and FDI variables.