Technological Convergence and Trade Patterns

Arbeitspapier

Casual evidence suggests that emerging and developing countries are often gaining market shares in world exports in technology-intensive sectors in the course of development. On the other hand textbook trade theory would suggest that these countries specialize in lower-tech industries. The reason for this is the assumption that the technology gap in these industries is lower and thus under the further assumption of equal wage rates across industries the developing countries have a comparative advantage in the lower-tech industries. In this paper we take a dynamic view on development and trade integration and distinguish three types of catching-up processes (the 'continuous convergence approach', the 'climbing up the ladder approach' and the 'jumping-up approach'). Using data for 25 countries and 32 industries we empirically analyse the different patterns of catching up over the period from 1981 to 1997. Further we discuss linkages between technological convergence, dynamics of comparative advantage and trade patterns.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: wiiw Working Paper ; No. 19

Classification and Topics

• Classification: Wirtschaft ; Empirical Studies of Trade ; Economic Development: General ; Industrialization; Manufacturing and Service Industries; Choice of Technology ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General ; One, Two, and Multisector Growth Models
• Subject: catching up ; dynamics of comparative advantage ; trade and technology

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Stehrer, Robert ; Wörz, Julia
• Event: Veröffentlichung
• (who): The Vienna Institute for International Economic Studies (wiiw)
• (where): Vienna
• (when): 2001

Further information

• Handle: http://hdl.handle.net/10419/203884
• Last update: 10.03.2025, 11:44 AM CET