Determinants of High-tech Exports: New Evidence from OECD Countries

Abstract

High export capacity is a key element for sustained long-term economic growth. To achieve this goal, the technological sophistication of exports plays a key role. To enhance exports with a high level of technological sophistication, it is critical to target key drivers of high-tech exports. Hence, this article studies the determinants of international trade flows of manufactures according to their technological content in the case of OECD countries. Given a panel of 35 countries and 15 years (2004 to 2018), panel data estimation techniques are used in the analysis. In addition, two alternative measures have been considered to measure the importance of high-technology content manufacturing exports: High-tech manufacturing exports and high-tech manufacturing exports as a share of total employment. Results obtained show strong evidence of the relevance of variables such as gross fixed capital formation on total employment, the land area per capita, the percentage of university graduates relative to the population group, R&D expenditure in terms of GDP, the stock of inward foreign direct investment in terms of GDP, imports of high-tech manufactures as a share of GDP, the quality of national governance and regulation, the country population and EU membership as determinants of technology-intensive exports. Moreover, the findings have significant implications for trade and industrial policies in OECD countries, to ensure the effectiveness of policies targeting the technological upgrading of exports.

The Impact of Manufacturing, Investment, Labor Force and Technology on Economic Growth in Palestine

“…Palestine has not undergone a significant technological upgrade in its exports. Therefore, it is crucial to target key drivers of hightech exports to enhance the level of technological sophistication in exports (Zapata et al, 2023). In analyzing the drivers of technology-intensive exports, research studies have identified variables that play a role in the technological level of countries' export.…”

“…In analyzing the drivers of technology-intensive exports, research studies have identified variables that play a role in the technological level of countries' export. These variables include research & development expenditures, the quality of human capital, foreign direct investment, technological specialization, level of economic freedom, and countries' openness to international trade (Zapata et al, 2023). To improve high-tech exports in Palestine, enhancing policies and investments targeted towards the technology and innovation sector can drive economic development.…”

A Catalyst for China’s High-Tech Export Competitiveness: Perspective of Technological Innovation

“…This approach has unique advantages as it can more specifically reveal how technological innovation directly affects the competitive positioning of individual products [23]. The export competitiveness of high-tech products is an important component of national competitiveness [24], influenced by a variety of factors including research and development investments [25,26], human capital [27], and government policies [28].…”