Industrial Diversity, Trade Patterns and Productivity Convergence

Robert Stehrer and Julia Wörz
Authors registered in the RePEc Author Service: Julia Maria Woerz ()

No 23, wiiw Working Papers from The Vienna Institute for International Economic Studies, wiiw

Abstract: Recent developments in economic integration show rather diverse patterns of integration into the world economy. Some countries are remaining in the low-tech industries whereas other countries succeed in becoming competitive also in high-tech industries. In this paper we postulate that positioning oneself at the lower end in the spectrum of high-tech industries is more favourable to a country's long-term development than aiming at the upper end of low-tech industries. We argue that countries which specialize in the lower end of the medium-high-tech activities are rewarded by faster productivity increases also in the upper end of the high-tech industries. In contrast, early specialization in medium-low-tech branches yields positive spillovers mainly in the low-tech sector, which is not promotive to catching-up in high-tech industries. We sketch a theoretical outline of this idea and present econometric results including four aggregate manufacturing branches and 37 countries. In the econometric analysis we also include trade and FDI variables.

Keywords: trade and technology; unit root tests; patterns of catching-up (search for similar items in EconPapers)
JEL-codes: C22 C23 F14 L6 O14 O33 O41 (search for similar items in EconPapers)
Date: 2002-11
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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Journal Article: Industrial Diversity, Trade Patterns, and Productivity Convergence (2009)
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