Exports, Product Differentiation and Knowledge Spillovers

Miguel Leon-Ledesma

Studies in Economics from School of Economics, University of Kent

Abstract: Empirical studies on aggregate export behaviour have recently emphasised the role played by innovation as the main force driving product differentiation and competitiveness for developed countries. These studies treat foreign innovation as a variable that affects negatively national export shares. We incorporate the impact of foreign innovation in a standard new trade theory model and find that, if knowledge spillovers exist, foreign knowledge accumulation could even have a positive effect on national exports. We then test the model using aggregate export data for a set of 21 OECD economies and find that the foreign stock of knowledge affects exports positively for the less advanced countries in the sample and has no impact on exports for the G7 economies.

Keywords: knowledge spillovers; product differentiation; export functions; panel cointegration (search for similar items in EconPapers)
JEL-codes: C22 C23 F12 O31 (search for similar items in EconPapers)
Date: 2002-07
New Economics Papers: this item is included in nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Journal Article: Exports, Product Differentiation and Knowledge Spillovers (2005)
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