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Business Services,Trade,and Research Intensity

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  • Lo, Chu-Ping
  • Yang, Chih-Hai

Abstract

This paper constructs a theoretical framework of trade to investigate how business services function as a mean of reducing costs and then encouraging research activities. Our theoretical model predicts that a country with a higher degree of business service specialization tends to have higher research intensity andsubsequently higher income. Using a panel dataset for 38 countries over the period1996-2015 to test the theoretical predictions, various robust estimations support our theoretical predictions.

Suggested Citation

  • Lo, Chu-Ping & Yang, Chih-Hai, 2020. "Business Services,Trade,and Research Intensity," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 61(1), pages 38-59, June.
  • Handle: RePEc:hit:hitjec:v:61:y:2020:i:1:p:38-59
    DOI: 10.15057/hje.2020003
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    References listed on IDEAS

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    More about this item

    Keywords

    trade; technology; research intensity; business services;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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