Economic Gains from Technology-Intensive Trade: An Empirical Assessment

Peter Daniels

Cambridge Journal of Economics, 1999, vol. 23, issue 4, 427-47

Abstract: National investment in technological activity is commonly justified in terms of the positive impacts upon productivity, international competitiveness and related aspects of national economic performance. This premise has found a supportive theoretical framework in the new technology and growth models. Based on extended technology-gap models, this study examines cross-country empirical evidence on the relationship between technology-intensive trade performance (as a proxy for technological output) and per capita economic performance, utilising 1978 to 1992 data for around 45 nations. The results provide some support for a positive relationship between trade performance and economic returns. However, the weak and often inconsistent results suggest that the unconditional pursuit of technology-intensive trade improvements may not necessarily have the expected net benefits. Copyright 1999 by Oxford University Press.

Date: 1999
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