R&D, trade in intermediate inputs, and the comparative advantage of advanced countries

Shuichiro Nishioka ()

Journal of the Japanese and International Economies, 2013, vol. 30, issue C, 96-110

Abstract: This paper examines the accumulation of physical capital versus knowledge (R&D) capital as a determinant of advanced countries’ comparative advantage. I show that advanced countries are abundant in R&D resources, specialize in knowledge-intensive stages of high-technology industries, and outsource labor-intensive stages of the industries to labor-abundant countries. In contrast, global data on production and trade cannot support the conventional view that advanced countries specialize in and export capital-intensive goods. My results indicate that the accumulation of knowledge capital plays a vital role in explaining advanced countries’ comparative advantage.

Keywords: Heckscher–Ohlin–Vanek; R&D service; Specialization; Production techniques; Foreign outsourcing (search for similar items in EconPapers)
JEL-codes: F11 O11 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jjieco:v:30:y:2013:i:c:p:96-110

DOI: 10.1016/j.jjie.2013.10.004

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