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The role of the technology and innovation gap in Polish trade relations. Empirical verification with the use of trade gravity approach

Author

Listed:
  • Tomasz Brodzicki

    (University of Gdansk, Faculty of Economics; Institute for Development)

  • Katarzyna Sledziewska

    (University of Warsaw)

Abstract

The technology gap theory as advocated by Posner (1961) described an advantage enjoyed by a country that introduces new goods into a market, gaining an initial edge and establishing its initial exporter status. The nexus between technology and innovation gap and trade is however much more complex. The goal of this paper is to investigate the actual role of technology and innovation gap in explaining intensity of bilateral trade flows of Poland with its trade partners at the general (country level) with the use of trade gravity approach. The analysis is carried out for 234 trade partners of Poland in the period 1999-2013. Technology gap is measured by TFP and relative patenting performance controlling for quality of institutions as well as technology and innovation indices of Global Competitiveness Report by the WEF (2014). In order to obtain unbiased results we utilize semi-mixed effects model using Poisson pseudo-maximum likelihood (PPML) estimator.

Suggested Citation

  • Tomasz Brodzicki & Katarzyna Sledziewska, 2015. "The role of the technology and innovation gap in Polish trade relations. Empirical verification with the use of trade gravity approach," Working Papers 1506, Instytut Rozwoju, Institute for Development.
    • Handle: RePEc:iro:wpaper:1506
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    technology; gap trade gravity; semi-mixed effect panel model;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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