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National Concentration of High-tech Products: The Second Great Divergence?

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  • Ju, Jiandong
  • Lu, Bing
  • Yu, Xinding

Abstract

Based on the product-country level trade data from 2004 to 2017, as well as the High-Tech Products Catalog from the US Census Bureau, this paper examines empirically the current phenomenon of “national concentration” in high-tech exports. The results show that the phenomenon of “national concentration” not only exists but also tends to be self-reinforcing. Compared with other products, the exports of high-tech products tend to be concentrated in certain countries, and this concentration trends were further strengthened after the global financial crisis of 2008–2009. The national concentration of R&D activities may be one of the important causes of the national concentration of high-tech products. This pattern remains robust when we further use the value-added export data and different definitions of high-tech products. We argue that the phenomenon of “national concentration” of high-tech exports may herald the arrival of the “Second Great Divergence” – the divergence between innovative and manufacturing activities – in the global economy.

Suggested Citation

  • Ju, Jiandong & Lu, Bing & Yu, Xinding, 2023. "National Concentration of High-tech Products: The Second Great Divergence?," MPRA Paper 115956, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:115956
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    Cited by:

    1. Ligang Song & Yixiao Zhou, 2023. "Guest Editors' Words," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(1), pages 1-4, January.

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    More about this item

    Keywords

    high-tech products; national concentration; R&D; second great divergence;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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