Innovation, diffusion, and trade: Theory and measurement

Santacreu, Ana María

doi:10.1016/j.jmoneco.2015.06.008

Cited by 65 publications

(26 citation statements)

References 43 publications

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“…Therefore, innovation and international technology diffusion appear to be important determinants of comparative advantage. Our reduced-form results are consistent with structural models that have studied the role of innovation and technology adoption as sources of productivity growth and comparative advantage, such as Cai et al (2017) and Santacreu (2015). n…”

Section: Resultssupporting

confidence: 89%

“…4 Higher-income countries are closer to the technology frontier, and we would expect them to benefit more from domestic innovation than lower-income countries. Indeed, in the data, there is a strong positive correlation between the level of income per capita of countries and their investment in R&D. Lower-income countries that are farther away from the technology frontier, however, benefit more from adoption of foreign innovations, as it has been quantified in Santacreu (2015). We conduct the same regression analysis as before for each group of countries and industries.…”

Section: Quantitative Resultsmentioning

confidence: 99%

“…3 Transfer of knowledge can occur through imported technology (Coe et al, 1997, Keller, 2004, and Santacreu, 2015 and multinational activity (Burstein andMonge-Naranjo, 2009, andGuadalupe et al, 2012), among other channels.…”

Section: Wagesmentioning

confidence: 99%

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Domestic Innovation and International Technology Diffusion as Sources of Comparative Advantage

Santacreu¹,

Zhu²

2018

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In the Ricardian model of trade, productivity differences across countries and industries determine the patterns of international trade-hence, comparative advantage (Costinot et al., 2012). As productivity differences increase over time, comparative advantage strengthens. Standard models of trade take these productivity differences, and therefore comparative advantage forces, as given (Eaton and Kortum, 2002, and Caliendo and Parro, 2015). However, understanding the determinants of comparative advantage is important in analyzing welfare gains from trade. Recently, several articles have studied endogenous forces that may cause differences in productivity across countries and industries (Sampson, 2017, Somale, 2017, and Cai et al., 2017). In these studies, innovation and its international diffusion across countries and industries are the main sources of differences in productivity. Countries and industries differ in both their ability to do research and development (R&D) and their ability to adopt innovations that have been developed elsewhere (i.e., international technology diffusion). Productivity differences across countries determine patterns of international trade-hence, comparative advantage. We use a multi-industry model of international trade to estimate a measure of industry productivity. We then quantify the effect that domestic innovation and technology diffusion have in explaining differences in productivity across countries and industries. Consistent with standard growth theories, we find the following: (i) Higher-income countries benefit more from domestic innovation than lower-income countries, whereas lower-income countries benefit more from technology diffusion; and (ii) the speed of convergence is larger for those countries and industries that are farther away from the technology frontier. To the extent that productivity differences determine comparative advantage, our findings suggest that domestic innovation and technology diffusion are endogenous sources of comparative advantage. (JEL F12, O33, O41, O47)

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Section: Resultssupporting

confidence: 89%

Section: Quantitative Resultsmentioning

confidence: 99%

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Domestic Innovation and International Technology Diffusion as Sources of Comparative Advantage

Santacreu¹,

Zhu²

2018

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“…Ekonomik büyümenin kaynaklarının neler olduğu sorusundan hareketle Santacreu (2014) tarafından yapılan çalışmanın amacı yabancı faktörleri (ticaret yoluyla yabancı inovasyonun benimsenmesi) ve yerli faktörleri (yerli inovasyon) dikkate alarak "içselleştirilmiş (embodied)" ekonomik büyümeyi ayrıştırmaya yöneliktir. 1996-2007 dönemine ilişkin 30 ülkenin yer aldığı örneklemdeki ülkeler ortak özelliklerine göre (benzer inovasyon yoğunluğu, yaygın ticaret marjinleri ve verimlilik) 3 gruba ayrılmıştır: yükselen piyasalar, daha az inovasyon yapan OECD ülkeleri ve daha fazla inovasyon yapan OECD ülkeleri.…”

Section: Uluslararası İktisadi Ve İdari İncelemeler Dergisiunclassified

The Effect of Technological Innovation on Economic Growth: The Case of Turkey-Eu (15) Countries

Yildiz

2018

Uluslararası İktisadi Ve İdari İncelemeler Dergisi

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ÖzÇalışmanın amacı 1998-2013 döneminde Türkiye ve AB-15 ülkelerinin teknolojik inovasyon performansının ekonomik büyüme düzeyleri üzerindeki etkisini ölçmeye yöneliktir. Ülkelerin teknolojik inovasyon performanslarını değerlendirirken tek bir gösterge kullanmak yerine çalışmada uluslararası literatürde yer alan Teknoloji Başarı Endeksi (TAI) ve Archibugi-CoCo (Ar-Co) endeks değerlerinden yola çıkarak teknolojik inovasyon endeks (TİE) değerleri hesaplanmıştır. Tüm yıllar ve ülkeler için hesaplanan bu değerler ekonometrik modelde bağımsız değişken olarak kullanılmıştır. Çalışmada referans çalışmalar ışığında geliştirilen panel ARDL modelindeki katsayılar PMGE ile tahmin edilmiştir. Elde edilen bulgulara göre panel genelinde ülkelerin TİE performansı ekonomik büyüme düzeylerini istatistiksel olarak anlamlı ve pozitif etkilemektedir. Ancak ülke bazında elde edilen bulgular Türkiye açısından değerlendirildiğinde, değişkenler arasında bir ilişki olduğuna dair istatistiksel olarak kuvvetli bir bulgu elde edilememiştir. Neticede Türkiye'nin hem TİE değeri hem de Teknolojik inovasyonun ekonomik büyüme üzerindeki etkisi açısından örneklem ülkelerin oldukça gerisinde kaldığını ifade etmek mümkündür. A b s t r a c tThe purpose of this study is to measure the effect of technological innovation performance on economic growth during 1998-2013 for Turkey and the EU-15 countries. Rather than using a single indicator when evaluating the performances of countries in technological innovation, technological innovation index (TIE) values were calculated from the indexes of Technology Achievement Index (TAI) and Archibugi-CoCo (Ar-Co) in international literature. These values calculated for the all years and for all countries are used as independent variables in the econometric model. The coefficients in the panel ARDL model developed in the reference study light in the study were estimated with PMGE. According to the findings obtained, TIE performance of the countries across the panel has a statistically significant and positive effect on the economic growth levels. However, when assessing countries in terms of Turkey on the basis of the findings, that there is a relationship between the variables statistically strong evidence could not be obtained. As a result of Turkey's possible to say that both TIA value of the sample remains far behind both in terms of growth performance of countries.

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“…Indeed, research has shown that low-frequency fluctuations of trade in varieties can explain differences in aggregate productivity growth across countries (Broda et al 2006;Goldberg et al 2010;Santacreu 2014). One interpretation of these findings is that technology is embedded in new goods created through innovation.…”

Section: Introductionmentioning

confidence: 99%

The trade comovement puzzle and the margins of international trade

Liao

Santacreu

2015

Journal of International Economics

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a b s t r a c tCountries that trade more with each other tend to have more strongly correlated business cycles. Yet, traditional international business cycle models predict a much weaker link between trade and business cycle comovement. We propose that fluctuations in the number of varieties embedded in trade flows may drive the observed comovement by increasing the correlation among trading partners' aggregate productivity. Our hypothesis is that business cycles should be more strongly correlated between countries that trade a wider variety of goods. We find empirical support for this hypothesis. After decomposing trade into its extensive and intensive margins, we find that the extensive margin explains most of the trade-productivity and trade-output comovement. This result is striking because the extensive margin accounts for only a fourth of the variability in total trade. We then develop a two-country model with heterogeneous firms, endogenous entry, and fixed export costs, in which the aggregate productivity correlation increases with trade in varieties. A numerical exercise shows that our proposed mechanism increases business cycle synchronization compared with the levels predicted by traditional models.

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Innovation, diffusion, and trade: Theory and measurement

Cited by 65 publications

References 43 publications

Domestic Innovation and International Technology Diffusion as Sources of Comparative Advantage

Domestic Innovation and International Technology Diffusion as Sources of Comparative Advantage

The Effect of Technological Innovation on Economic Growth: The Case of Turkey-Eu (15) Countries

The trade comovement puzzle and the margins of international trade

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