IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/59156.html
   My bibliography  Save this paper

Technology, Growth and Trade: Schumpeterian Perspectives

Author

Listed:
  • Fagerberg, Jan

Abstract

This is an attempt to apply Schumpeterian theory to the study of "international economics". The first chapter gives a brief out­ line of the Schumpeterian perspective, considers how it may apply (and has been applied) to the study of international economics and presents some preliminary hypotheses, to be further developed and tested in later chapters. Chapter 2 uses the Schumpeterian model of innovation-diffusion as a framework for the study of "why growth rates differ" between countries, while chapter 3 extends the analysis to include international trade - or "competitiveness" - as well. The main finding of chapters 2-3 is that differences in the growth of national technological activities, whether measured through R&D or patent statistics, contribute significantly to differences in economic growth and export performance across countries. Chapter 4, which focuses on the relation between innovation-diffusion, structural changes in world trade and export performance, extends the analysis of the preceding chapters to the multi-sector frame-work. The results show that the structural changes in world trade in the Post-War period were most favourable for countries with a high level of national technological activity, an advanced export structure and a large domestic market. However, the rapid growth in world trade in this period did at the same time allow countries on a lower level of economic and technological development to catch up through imitation and exploitation of cost-advantages. The countries least favourably affected were small countries with a high level of income and costs, but a relatively low level of national technological activity. Chapter 5 considers the problems of small, developed countries in more detail, using the Nordic countries as illustrations, while chapter 6 uses the same empirical material to discuss the implications of innovation-diffusion for changes in specialization patterns/intra-industry trade. The final chapter (7) contains summary and conclusions.

Suggested Citation

  • Fagerberg, Jan, 1988. "Technology, Growth and Trade: Schumpeterian Perspectives," MPRA Paper 59156, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:59156
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/59156/1/MPRA_paper_59156.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Anthony P. Thirlwall, 2011. "The Balance of Payments Constraint as an Explanation of International Growth Rate Differences," PSL Quarterly Review, Economia civile, vol. 64(259), pages 429-438.
    2. Antonio Aquino, 1978. "Intra-industry trade and inter-industry specialization as concurrent sources of International Trade in manufactures," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 114(2), pages 275-296, June.
    3. D. W. Jorgenson & Z. Griliches, 1967. "The Explanation of Productivity Change," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 34(3), pages 249-283.
    4. Fagerberg, Jan, 1987. "A technology gap approach to why growth rates differ," Research Policy, Elsevier, vol. 16(2-4), pages 87-99, August.
    5. P. Tharakan, 1986. "The intra-industry trade of Benelux with the developing world," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 122(1), pages 131-149, March.
    6. John W. Kendrick, 1961. "Productivity Trends in the United States," NBER Books, National Bureau of Economic Research, Inc, number kend61-1, June.
    7. Michaely, Michael, 1977. "Exports and growth : An empirical investigation," Journal of Development Economics, Elsevier, vol. 4(1), pages 49-53, February.
    8. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(2), pages 385-406, June.
    9. Anthony Philip Thirlwall, 2012. "Balance of Payments Constrained Growth Models: History and Overview," Palgrave Macmillan Books, in: Elias Soukiazis & Pedro A. Cerqueira (ed.), Models of Balance of Payments Constrained Growth, chapter 1, pages 11-49, Palgrave Macmillan.
    10. Veblen, Thorstein, 1915. "Imperial Germany and The Industrial Revolution," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1915.
    11. 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.
    12. Nelson, Richard R, 1973. "Recent Exercises in Growth Accounting: New Understanding or Dead End?," American Economic Review, American Economic Association, vol. 63(3), pages 462-468, June.
    13. Angus Maddison, 1979. "Long run dynamics of productivity growth," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 32(128), pages 3-43.
    14. Ephraim Kleiman & Yaakov Kop, 1984. "Who trades with whom — the income pattern of international trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 120(3), pages 499-521, September.
    15. Balassa, Bela, 1986. "Intra-Industry specialization : A cross-country analysis," European Economic Review, Elsevier, vol. 30(1), pages 27-42, February.
    16. Ã…dne Cappelen & Nils Petter Gleditsch & Olav Bjerkholt, 1984. "Military Spending and Economic Growth in the OECD Countries," Journal of Peace Research, Peace Research Institute Oslo, vol. 21(4), pages 361-373, December.
    17. Maddison, Angus, 1987. "Growth and Slowdown in Advanced Capitalist Economies: Techniques of Quantitative Assessment," Journal of Economic Literature, American Economic Association, vol. 25(2), pages 649-698, June.
    18. Maddala, G S, 1971. "The Use of Variance Components Models in Pooling Cross Section and Time Series Data," Econometrica, Econometric Society, vol. 39(2), pages 341-358, March.
    19. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    20. Lancaster, Kelvin, 1980. "Intra-industry trade under perfect monopolistic competition," Journal of International Economics, Elsevier, vol. 10(2), pages 151-175, May.
    21. Raymond Vernon, 1970. "The Technology Factor in International Trade," NBER Books, National Bureau of Economic Research, Inc, number vern70-1, June.
    22. M. V. Posner, 1961. "International Trade And Technical Change," Oxford Economic Papers, Oxford University Press, vol. 13(3), pages 323-341.
    23. Moses Abramovitz, 1956. "Resource and Output Trends in the United States since 1870," NBER Books, National Bureau of Economic Research, Inc, number abra56-1, June.
    24. Gary Hufbauer, 1970. "The Impact of National Characteristics & Technology on the Commodity Composition of Trade in Manufactured Goods," NBER Chapters, in: The Technology Factor in International Trade, pages 145-231, National Bureau of Economic Research, Inc.
    25. Finger, J M, 1975. "Trade Overlap and Intra-Industry Trade," Economic Inquiry, Western Economic Association International, vol. 13(4), pages 581-589, December.
    26. Cornwall, John, 1976. "Diffusion, Convergence and Kaldor's Laws," Economic Journal, Royal Economic Society, vol. 86(342), pages 307-314, June.
    27. Moses Abramovitz, 1956. "Resource and Output Trends in the United States since 1870," NBER Chapters, in: Resource and Output Trends in the United States since 1870, pages 1-23, National Bureau of Economic Research, Inc.
    28. Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-973, October.
    29. repec:bla:scandj:v:89:y:1987:i:3:p:349-67 is not listed on IDEAS
    30. Smith, R P, 1977. "Military Expenditure and Capitalism," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 1(1), pages 61-76, March.
    31. Irving B. Kravis, 1956. ""Availability" and Other Influences on the Commodity Composition of Trade," Journal of Political Economy, University of Chicago Press, vol. 64(2), pages 143-143.
    32. Nelson, Richard R, 1981. "Research on Productivity Growth and Productivity Differences: Dead Ends and New Departures," Journal of Economic Literature, American Economic Association, vol. 19(3), pages 1029-1064, September.
    33. William H. Gruber & Raymond Vernon, 1970. "The Technology Factor in a World Trade Matrix," NBER Chapters, in: The Technology Factor in International Trade, pages 233-301, National Bureau of Economic Research, Inc.
    34. Houthakker, Hendrik S & Magee, Stephen P, 1969. "Income and Price Elasticities in World Trade," The Review of Economics and Statistics, MIT Press, vol. 51(2), pages 111-125, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wolff, Edward N., 1995. "Technological change, capital accumulation, and changing trade patterns over the long term," Structural Change and Economic Dynamics, Elsevier, vol. 6(1), pages 43-70, March.

    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. Godin, Benoit, 2004. "The New Economy: what the concept owes to the OECD," Research Policy, Elsevier, vol. 33(5), pages 679-690, July.
    2. Fagerberg, Jan & Srholec, Martin & Verspagen, Bart, 2010. "Innovation and Economic Development," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 833-872, Elsevier.
    3. Jan Fagerberg & Martin Srholec, 2005. "Catching up: What are the Critical Factors for success?," Working Papers on Innovation Studies 20050401, Centre for Technology, Innovation and Culture, University of Oslo.
    4. Das, Gouranga G., 2002. "Cross-Country Analysis of Empirical Evidences of Intra-industry Trade in Manufactures for Dynamic Asian and Other Developing Economies: Implications for Economic Growth and Development," MPRA Paper 37916, University Library of Munich, Germany, revised 2002.
    5. David, Paul A., 1989. "COMPUTER AND DYNAMO: The Modern Productivity Paradox in a Not-Too Distant Mirror," Economic Research Papers 268373, University of Warwick - Department of Economics.
    6. Jan Fagerberg & Martin Srholec, 2017. "Explaining regional economic performance: the role of competitiveness, specialization and capabilities," Chapters, in: Robert Huggins & Piers Thompson (ed.), Handbook of Regions and Competitiveness, chapter 5, pages 117-135, Edward Elgar Publishing.
    7. Leandro Prados de la Escosura & Tamás Vonyó & Ilya B. Voskoboynikov, 2021. "Accounting For Growth In History," Journal of Economic Surveys, Wiley Blackwell, vol. 35(3), pages 655-669, July.
    8. Jesus Felipe & John S.L. McCombie, 2013. "The Aggregate Production Function and the Measurement of Technical Change," Books, Edward Elgar Publishing, number 1975.
    9. Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-374, June.
    10. Das, Gouranga G., 2007. "Intra-Industry Trade and Development: Revisiting Theory, Measurement and New Evidences," MPRA Paper 37260, University Library of Munich, Germany, revised 01 Sep 2008.
    11. Furman, Jeffrey L. & Hayes, Richard, 2004. "Catching up or standing still?: National innovative productivity among 'follower' countries, 1978-1999," Research Policy, Elsevier, vol. 33(9), pages 1329-1354, November.
    12. Rensman, Marieke, 1996. "Economic growth and technological change in the long run : a survey of theoretical and empirical literature," Research Report 96C10, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    13. repec:dgr:rugsom:96c10 is not listed on IDEAS
    14. Jan Fagerberg & Martin Srholec, 2017. "Global Dynamics, Capabilities and the Crisis," Economic Complexity and Evolution, in: Andreas Pyka & Uwe Cantner (ed.), Foundations of Economic Change, pages 83-106, Springer.
    15. Jan Fagerberg, 1999. "Technology, Policy, Growth - Theory, Evidence and Interpretation," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 25, pages 5-14.
    16. Charles R. Hulten, 2000. "Total Factor Productivity: A Short Biography," NBER Working Papers 7471, National Bureau of Economic Research, Inc.
    17. Angus Maddison, 1997. "Causal Influences on Productivity Performance 1820–1992: A Global Perspective," Journal of Productivity Analysis, Springer, vol. 8(4), pages 325-359, November.
    18. Dulude, Louise, 1978. "L’effort consacré à la recherche et au développement : un facteur explicatif de la structure et de l’évolution des exportations de pays industrialisés," L'Actualité Economique, Société Canadienne de Science Economique, vol. 54(1), pages 21-45, janvier-m.
    19. Harabi, Najib, 1994. "Technischer Fortschritt in der Schweiz: Empirische Ergebnisse aus industrieökonomischer Sicht [Technischer Fortschritt in der Schweiz:Empirische Ergebnisse aus industrieökonomischer Sicht]," MPRA Paper 6725, University Library of Munich, Germany.
    20. Szirmai, Adam, 2012. "Proximate, intermediate and ultimate causality: Theories and experiences of growth and development," MERIT Working Papers 2012-032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    21. Nicholas Crafts & Pieter Woltjer, 2021. "Growth Accounting In Economic History: Findings, Lessons And New Directions," Journal of Economic Surveys, Wiley Blackwell, vol. 35(3), pages 670-696, July.

    More about this item

    Keywords

    Technology; Innovation; Growth; Trade; Competitiveness; Schumpeterian;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    Statistics

    Access and download statistics

    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:pra:mprapa:59156. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.