IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/331076.html
   My bibliography  Save this paper

Industrial diversity in patterns of productivity convergence and trade specialisation

Author

Listed:
  • Stehrer, Robert
  • Wörz, Julia

Abstract

Trade specialisation according to current comparative advantage need not necessarily be an optimal development strategy in a long-run dynamic setting. Given the possibility of aquiring omparative advantages in industries where a country is not competitive initially (i.e. through policy intervention, learning by doing, knowledge and/or technology spillovers), we argue that ountries should try to enter high tech industries as early as possible. Based on the presence of stronger intra-industry versus weaker inter-industry spillovers, we want to test the hypothesis that countries which specialise in the lower end of the medium-high tech activites are rewarded by faster productivity increases also in the upper end of the high-tech industries. In contrast, early specialisation in less technology intensive branches yields positive spillovers mainly inside these sectors resulting in a lower long-run growth potential. We present econometric results including four industry segments for 37 countries over the time period 1981 to 1998. Our estimations confirm the hypothesis of an 'advantage of backwardness' at the branch level. Further, intra-branch spillovers were often significant while only few inter-branch effects were found. With respect to trade integration, the results were mixed, openness on the import side had positive effects in general, while openness on the export side spurred convergence only in less technology intensive industries. Besides these direct effects, only very few trade related inter-industry effects were found.

Suggested Citation

  • Stehrer, Robert & Wörz, Julia, 2003. "Industrial diversity in patterns of productivity convergence and trade specialisation," Conference papers 331076, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331076
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/331076/files/1008.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nelson, Richard R. & Sampat, Bhaven N., 2001. "Making sense of institutions as a factor shaping economic performance," Journal of Economic Behavior & Organization, Elsevier, vol. 44(1), pages 31-54, January.
    2. Bass, Frank M, 1980. "The Relationship between Diffusion Rates, Experience Curves, and Demand Elasticities for Consumer Durable Technological Innovations," The Journal of Business, University of Chicago Press, vol. 53(3), pages 51-67, July.
    3. Davies, Stephen W., 1979. "Inter-firm diffusion of process innovations," European Economic Review, Elsevier, vol. 12(4), pages 299-317, October.
    4. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    5. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    6. Dan Horsky, 1990. "A Diffusion Model Incorporating Product Benefits, Price, Income and Information," Marketing Science, INFORMS, vol. 9(4), pages 342-365.
    7. repec:bla:econom:v:41:y:1974:i:162:p:139-56 is not listed on IDEAS
    8. Dan Horsky & Leonard S. Simon, 1983. "Advertising and the Diffusion of New Products," Marketing Science, INFORMS, vol. 2(1), pages 1-17.
    9. Geoffrey M. Hodgson (ed.), 1993. "The Economics of Institutions," Books, Edward Elgar Publishing, number 557.
    10. Shlomo Kalish, 1985. "A New Product Adoption Model with Price, Advertising, and Uncertainty," Management Science, INFORMS, vol. 31(12), pages 1569-1585, December.
    11. Metcalfe, J S, 1970. "Diffusion of Innovation in the Lancashire Textile Industry," The Manchester School of Economic & Social Studies, University of Manchester, vol. 38(2), pages 145-162, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ferreira, Kevin D. & Lee, Chi-Guhn, 2014. "An integrated two-stage diffusion of innovation model with market segmented learning," Technological Forecasting and Social Change, Elsevier, vol. 88(C), pages 189-201.
    2. Meade, Nigel & Islam, Towhidul, 2006. "Modelling and forecasting the diffusion of innovation - A 25-year review," International Journal of Forecasting, Elsevier, vol. 22(3), pages 519-545.
    3. Geroski, P. A., 2000. "Models of technology diffusion," Research Policy, Elsevier, vol. 29(4-5), pages 603-625, April.
    4. Jean-Louis Fusillier & Lionel Richefort, 2010. "Imitation, rationalité et adoption de technologies d’irrigation améliorées à l’île de la Réunion," Économie et Prévision, Programme National Persée, vol. 193(2), pages 59-73.
    5. Yi Xiang & David Soberman & Hubert Gatignon, 2022. "The Effect of Marketing Breadth and Competitive Spread on Category Growth," Production and Operations Management, Production and Operations Management Society, vol. 31(2), pages 622-644, February.
    6. Trichy V. Krishnan & Frank M. Bass & Dipak C. Jain, 1999. "Optimal Pricing Strategy for New Products," Management Science, INFORMS, vol. 45(12), pages 1650-1663, December.
    7. Ataman, B.M., 2007. "Managing brands," Other publications TiSEM 462dcbba-2ac1-46d1-a61c-f, Tilburg University, School of Economics and Management.
    8. Teng, Jinn-Tsair & Thompson, Gerald L., 1996. "Optimal strategies for general price-quality decision models of new products with learning production costs," European Journal of Operational Research, Elsevier, vol. 93(3), pages 476-489, September.
    9. Martin Hewing, 2012. "A Theoretical and Empirical Comparison of Innovation Diffusion Models Applying Data from the Software Industry," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 3(2), pages 125-141, June.
    10. Chaab, Jafar & Zaccour, Georges, 2024. "Dynamic pricing in the presence of social externalities and reference-price effect," Omega, Elsevier, vol. 122(C).
    11. Shun-Chen Niu, 2006. "A Piecewise-Diffusion Model of New-Product Demands," Operations Research, INFORMS, vol. 54(4), pages 678-695, August.
    12. Amit Mehra & Gireesh Shrimali, 2008. "Introduction of Software Products and Services Through "Public" Beta Launches," Working Papers 08-11, NET Institute.
    13. Barnes, Belinda & Southwell, Darren & Bruce, Sarah & Woodhams, Felicity, 2014. "Additionality, common practice and incentive schemes for the uptake of innovations," Technological Forecasting and Social Change, Elsevier, vol. 89(C), pages 43-61.
    14. Chang, Byeong-Yun & Li, Xu & Kim, Yun Bae, 2014. "Performance comparison of two diffusion models in a saturated mobile phone market," Technological Forecasting and Social Change, Elsevier, vol. 86(C), pages 41-48.
    15. Fouad El Ouardighi & Gustav Feichtinger & Gila E. Fruchter, 2018. "Accelerating the diffusion of innovations under mixed word of mouth through marketing–operations interaction," Annals of Operations Research, Springer, vol. 264(1), pages 435-458, May.
    16. Christophe Van den Bulte & Stefan Stremersch, 2004. "Social Contagion and Income Heterogeneity in New Product Diffusion: A Meta-Analytic Test," Marketing Science, INFORMS, vol. 23(4), pages 530-544, July.
    17. Zhang, Jie & Chiang, Wei-yu Kevin, 2020. "Durable goods pricing with reference price effects," Omega, Elsevier, vol. 91(C).
    18. Arda Yenipazarli, 2015. "A road map to new product success: warranty, advertisement and price," Annals of Operations Research, Springer, vol. 226(1), pages 669-694, March.
    19. Fındık, Derya & Tansel, Aysit, 2013. "Resources on the stage: a firm level analysis of the ict adoption in Turkey," MPRA Paper 65956, University Library of Munich, Germany, revised 05 Aug 2014.
    20. Dominique Guellec & Bruno Van Pottelsberghe De La Potterie, 2003. "The impact of public R&D expenditure on business R&D," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(3), pages 225-243.

    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:ags:pugtwp:331076. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.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.