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The determinants of trade performance: influence of R&D on export flows

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  • Inmaculada Martinez-Zarzoso
  • Celestino Suarez-Burguet

Abstract

A theoretical model is presented, in which supply side differences between countries determine international trade flows. This model is empirically tested at a sectoral level for a group of EU countries, within a framework that focuses on changes through time and differences between countries. The results show that the validity of the theoretical model is limited at sectoral level. However, as expected, we find that the variable representing technological differences is significant and correctly signed for high-technology sectors. The evidence points to the existence of different production functions across countries and to the importance of supply side factors in determining the direction and the terms of trade.

Suggested Citation

  • Inmaculada Martinez-Zarzoso & Celestino Suarez-Burguet, 2000. "The determinants of trade performance: influence of R&D on export flows," Applied Economics, Taylor & Francis Journals, vol. 32(15), pages 1939-1946.
    • Handle: RePEc:taf:applec:v:32:y:2000:i:15:p:1939-1946
    DOI: 10.1080/00036840050155869
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    1. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
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    Cited by:

    1. Ming-Liang Yeh & Hsiao-Ping Chu & Peter Sher & Yi-Chia Chiu, 2010. "R&D intensity, firm performance and the identification of the threshold: fresh evidence from the panel threshold regression model," Applied Economics, Taylor & Francis Journals, vol. 42(3), pages 389-401.

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