IDEAS home Printed from https://ideas.repec.org/a/jda/journl/vol.44year2011issue1pp167-186.html
   My bibliography  Save this article

Impact of technology and physical capital on export quality

Author

Listed:
  • Hasan A. Faruq

    (Xavier University, USA)

Abstract

This paper examines why different countries export different qualities of products. While previous studies have attributed quality differences to differences in physical capital endowments, there is a dearth of empirical work focusing on the effect of technology on the quality of exports. Using data on U.S. imports from 58 countries, we analyze the impact of technology and physical capital on quality. Our findings suggest that the export of high quality differentiated goods is associated with research and development (R&D) activities and foreign direct investment (FDI). However, physical capital has no effect on quality in the technology-intensive machinery industry. These results imply that if countries are interested in increasing the quality of the goods they export, they might consider implementing policies that promote R&D activities or attract FDI.

Suggested Citation

  • Hasan A. Faruq, 2010. "Impact of technology and physical capital on export quality," Journal of Developing Areas, Tennessee State University, College of Business, vol. 44(1), pages 167-186, September.
    • Handle: RePEc:jda:journl:vol.44:year:2011:issue1:pp:167-186
    as

    Download full text from publisher

    File URL: http://muse.jhu.edu/journals/journal_of_developing_areas/v044/44.1.faruq.html
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Canh Phuc Nguyen & Thanh Dinh Su, 2021. "Export quality dynamics: Multidimensional evidence of financial development," The World Economy, Wiley Blackwell, vol. 44(8), pages 2319-2343, August.

    More about this item

    Keywords

    Bilateral Trade; Heckscher-Ohlin Model; FDI; Product Quality; R&D;
    All these keywords.

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade

    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:jda:journl:vol.44:year:2011:issue1:pp:167-186. 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: Abu N.M. Wahid (email available below). General contact details of provider: https://edirc.repec.org/data/cbtnsus.html .

    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.