IDEAS home Printed from https://ideas.repec.org/a/elg/ejeepi/v18y2021i1p29-54.html
   My bibliography  Save this article

Technological progress, non-price factors competitiveness, and changes in trade income elasticities: empirical evidence from South Korea and Hong Kong

Author

Listed:
  • Marco Flávio Cunha Resende

    (Economics Department, Federal University of Minas Gerais, Belo Horizonte, Brazil)

  • Vitor Leone

    (Leicester Castle Business School, De Montfort University, Leicester, UK)

  • Daniela Almeida Raposo Torres

    (Economics Department, Federal University of São João-Del-Rei, Brazil)

  • Simeon Coleman

    (School of Business and Economics, Loughborough University, UK)

Abstract

In the balance-of-payments-constrained growth model literature, income elasticities (IEs) are considered as the crucial element determining a country's long-run growth rate. Although the extant literature accepts that technology matters for IEs magnitude, explanations linking technology and IEs magnitude are limited. In this paper, we make use of the National Innovation System (NIS) concept from the Evolutionary School to explain the channels through which the size of a country's IEs is influenced by the level of development of its NIS, which in turn is a channel through which the non-price competitiveness factors work. Additionally, we empirically test the hypothesis that the catch-up allowed by NIS developments achieved in South Korea and Hong Kong improved their IEs over the 1980–1995 period. Our empirical results suggest a link between the level of NIS development and the size of the IEs.

Suggested Citation

  • Marco Flávio Cunha Resende & Vitor Leone & Daniela Almeida Raposo Torres & Simeon Coleman, 2021. "Technological progress, non-price factors competitiveness, and changes in trade income elasticities: empirical evidence from South Korea and Hong Kong," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 18(1), pages 29-54, April.
    • Handle: RePEc:elg:ejeepi:v:18:y:2021:i:1:p29-54
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/view/journals/ejeep/18-1/ejeep.2021.01.03.xml
    Download Restriction: Restricted Access
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    National Innovation System; income elasticities; imports; exports;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:ejeepi:v:18:y:2021:i:1:p29-54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Phillip Thompson (email available below). General contact details of provider: http://www.elgaronline.com/ejeep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.