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Technological effects of intra-OECD trade in manufacturing: A panel data analysis over the period 1988-2008

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  • Javad Abedini

Abstract

This article seeks to study how intra-OECD trade in manufacturing goods has affected technological heterogeneity across member states during 1988-2008. To this aim, we derive a panel data version of the Eaton and Kortum (2002) normalised trade model to estimate, annually, the technological heterogeneity of OECD countries. We find a gradual technological convergence across the group as the sensitivity of intra-group trade to price factors increases over time. However, the results diverge when considering European and non-European OECD sub-samples, separately. We find that technological convergence is not an automatic result of intra-group trade but, for that, a more general programme of economic liberalisation, including free movement of capital and labour, is also required.

Suggested Citation

  • Javad Abedini, 2014. "Technological effects of intra-OECD trade in manufacturing: A panel data analysis over the period 1988-2008," OECD Journal: Economic Studies, OECD Publishing, vol. 2013(1), pages 165-177.
    • Handle: RePEc:oec:ecokac:5k49lch54v8n
    DOI: 10.1787/eco_studies-2013-5k49lch54v8n
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    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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