Innovation, export performance and trade elasticities across different sectors

Bottega, Ana; Romero, João Prates

doi:10.1016/j.strueco.2021.05.008

Cited by 26 publications

(17 citation statements)

References 50 publications

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“…Whether the positive effects are sufficient to increase the weighted-average income elasticity of total Southern exports remains to be seen, especially since the effects are strongest in the middle of the technological spectrum and weaker for high-skill manufactures. Furthermore, the weaker effects of the RER on high-skill exports compared with medium-skill and resourceintensive goods-similar to the finding of Bottega & Romero (2021) about high-tech versus lowtech exports-suggest that RER undervaluation may be a better strategy for developing countries to achieve middle income status than for such countries to escape from the "middle income trap. "…”

Section: Empirical Estimatesmentioning

confidence: 73%

Section: Effects Of Relative Prices and The Real Exchange Ratementioning

confidence: 99%

“…(2015). However, Bottega & Romero (2021) use more direct measures of technological competitiveness ( T and T f ) based on patent data instead of TFP estimates. These authors employ industry‐level data for 15 countries in the sample period 1976–2012 and use both system GMM and panel error correction methods as a sensitivity test.…”

Section: Effects Of Relative Prices and The Real Exchange Ratementioning

confidence: 99%

“…In regard to price competitiveness, Bottega and Romero find that it is statistically insignificant in most of their estimates for all industries, especially when technological competitiveness is included, but it is significant in split samples for “high technology” and “low technology” industries—especially the latter when the innovation variables are included. Overall, Bottega & Romero (2021, p. 182) conclude that “non‐price and technological competitiveness are more relevant for the export performance of high‐tech products, while price competitiveness is a more determinant factor for the exports of low‐tech products.”…”

Section: Effects Of Relative Prices and The Real Exchange Ratementioning

confidence: 99%

“…Bottega & Romero (2021) adopt a similar conceptual approach to Romero & McCombie (2018) while also drawing on other recent studies of technology and trade such as Madsen (2008) and Ang et al (2015). However, Bottega & Romero (2021) use more direct measures of technological competitiveness (T and T f ) based on patent data instead of TFP estimates. These authors employ industry-level data for 15 countries in the sample period 1976-2012 and use both system GMM and panel error correction methods as a sensitivity test.…”

Section: Empirical Estimatesmentioning

confidence: 99%

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New advances and controversies in the framework of balance‐of‐payments‐constrained growth

Blecker

2021

Journal of Economic Surveys

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This article surveys selected recent contributions and debates regarding fundamental aspects of the theory of balance-of-payments-constrained growth (BPCG). The survey focuses mainly on studies, from roughly the period since 2010, in four broad (and related) areas: whether and how relative prices and the real exchange rate affect export performance and long-run growth; the role of endogenous technological progress; the causes and consequences of structural change; and the dynamics of adjustment toward (or cycles around) a long-run growth equilibrium with a balance-of-payments constraint. The discussion also highlights the increasing incorporation of insights from other theoretical traditions (Kaleckian, Kaldorian, Schumpeterian, Goodwinian, and structuralist) into the BPCG framework. The survey suggests the need to clarify the underlying assumptions and policy implications of the BPCG model and to complement its focus on long-run growth rates with analyses of medium-run adjustments and level effects.

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Section: Empirical Estimatesmentioning

confidence: 73%

Section: Effects Of Relative Prices and The Real Exchange Ratementioning

confidence: 99%

Section: Effects Of Relative Prices and The Real Exchange Ratementioning

confidence: 99%

Section: Effects Of Relative Prices and The Real Exchange Ratementioning

confidence: 99%

Section: Empirical Estimatesmentioning

confidence: 99%

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New advances and controversies in the framework of balance‐of‐payments‐constrained growth

Blecker

2021

Journal of Economic Surveys

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Does global value chain participation boost high technology exports?

Altun

AVŞAR

Turan

et al. 2022

J of Intl Development

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This study examines the role of global value chain (GVC) participation in high technology exports using data over 120 countries during the 1995–2019 period. Our results suggest that GVC participation matters for high‐tech exports. While GVC participation with higher income countries is significantly associated with high‐tech exports, GVC participation with lower income countries has no effect. However, regardless of the origin countries, high‐tech GVC participation raises high‐tech exports. Moreover, GVC participation has a positive impact on high‐tech exports to lower income countries. Finally, we present evidence that the determinants of high‐tech exports vary by the income level of destination countries.

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Semi-endogenous growth in a non-Walrasian DSEM for Brazil: estimation and simulation of changes in foreign income, human capital, R&D, and terms of trade

Ziesemer

2022

Econ Change Restruct

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In an empirical, dynamic simultaneous equation model (DSEM) for Brazil with 22 equations and variables, we show that foreign income is a driver of economic growth besides semi-endogenous technical change. With a balance-of-payments constraint and endogenous terms of trade, the major mechanism is (i) world GDP driving exports, (ii) exports paying for imported capital goods, which (iii) enter a production function increasing output and the foreign-debt/GDP ratio and (iv) increase the endogenous labour force, and (v) slightly reduce human capital growth. The savings gap drives foreign debt and interest rates up and make the model unstable. Permanent increases of human capital increase the R&D/GDP ratio, labour-augmenting productivity, and GDP. A policy to increase the R&D/GDP ratio leads to more human capital, labour productivity and GDP levels. Both knowledge policies reduce the debt/GDP ratio. A lasting shock on the terms of trade reveals that there is no Harberger–Laursen–Metzler effect. The results hold in the presence of endogenous terms of trade, foreign debt, net foreign income, and net current transfers from abroad, and non-Walrasian (dis-)equilibrium variables: inflation and changing inventories for the goods market, and unemployment in the labour market. Policy should strengthen the weak link from R&D (research and development) to technical change and make education more attractive.

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Innovation, export performance and trade elasticities across different sectors

Cited by 26 publications

References 50 publications

New advances and controversies in the framework of balance‐of‐payments‐constrained growth

New advances and controversies in the framework of balance‐of‐payments‐constrained growth

Does global value chain participation boost high technology exports?

Semi-endogenous growth in a non-Walrasian DSEM for Brazil: estimation and simulation of changes in foreign income, human capital, R&D, and terms of trade

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