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Technical progress and the pattern of specialization in world trade in manufactures, 1965 to 1987

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  • Lücke, Matthias

Abstract

It has been hypothesized that technical progress will erode the competitiveness of the manufactured exports of developing countries. The paper tests two assumptions underlying this hypothesis. First, limited technological competence might prevent developing countries from competing effectively in industries with rapid technological change. Secondly, increases in labour productivity might reduce the importance of low labour costs as a determinant of competitiveness. This paper presents a crosscountry, cross-industry econometric analysis of the determinants of specialization in trade in manufactures, covering 3 7 industrialized and developing countries. Neither hypothesized relationship is supported by the data.

Suggested Citation

  • Lücke, Matthias, 1992. "Technical progress and the pattern of specialization in world trade in manufactures, 1965 to 1987," Kiel Working Papers 534, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:534
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    References listed on IDEAS

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    1. Fischer, Bernhard & Herken-Krauer, Juan-Carlos & Lücke, Matthias & Nunnenkamp, Peter, 1988. "Capital-intensive industries in newly industrializing countries: the case of the Brazilian automobile and steel industries," Open Access Publications from Kiel Institute for the World Economy 411, Kiel Institute for the World Economy (IfW Kiel).
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    More about this item

    JEL classification:

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

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