Technological catching up, quality of exports and competitiveness: a sectoral perspective
Eleonora Cavallaro (),
Piero Esposito (),
Alessia Matano () and
Marcella Mulino ()
No 158, Working Papers from University of Rome La Sapienza, Department of Public Economics
In the paper we focus on emerging market economiesâ€™ pattern of trade, with a view to explaining the different features of competitiveness for high skill- and low skill-intensive firms. We consider a theoretical dynamical setup where high-skill firms engage in innovation activity and gain market shares in high-income â€ quality dominatedâ€ markets thanks to technological catching up, whereas low-skill firms face price competition for their exports. On the basis of the theoretical model, we run econometric estimations for trade between CEECs and EU economies over the period 2000-2007. In the econometric analysis we first test the assumption that UVR is an adequate indicator of quality in trade, showing that in high skill-intensive firms it is systematically correlated to domestic and foreign technological variables; we then use the fitted UVR in the estimation of the role of preference for quality in the evolution of CEECsâ€™ market shares. The estimations support the results of the theoretical model as to the role of non-price competitiveness stemming from quality-supply as well as quality-demand factors.
Keywords: Vertical innovation; Knowledge spillovers; Product quality; International competitiveness. (search for similar items in EconPapers)
JEL-codes: F12 F14 F15 O32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-ino and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Journal Article: Technological Catching Up, Quality of Exports, and Competitiveness: A Sectoral Perspective (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:sap:wpaper:wp158
Access Statistics for this paper
More papers in Working Papers from University of Rome La Sapienza, Department of Public Economics Contact information at EDIRC.
Bibliographic data for series maintained by Luisa Giuriato ().