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Title:Comparative advantage patterns and domestic determinants in emerging countries: An analysis with a focus on technology PDF Logo
Authors:Marconi, Daniela
Rolli, Valeria
Issue Date:2008
Series/Report no.:Research paper / UNU-WIDER 2008.81
Abstract:During the last two decades a number of emerging economies have become deeply engaged in technology-intensive production. This has been reflected in their international trade specialization shifting from labour-intensive goods towards capital-intensive ones, and in rapid productivity gains across all manufacturing activities. The paper investigates for a sample of sixteen emerging countries, the linkages between the pattern of revealed comparative advantages (RCAs), captured by a modified version of the Lafay index of international trade specialization, and the competitiveness structure of the domestic manufacturing sector, measured by a set of industry and country-specific variables. Positive and large RCAs are found to be associated with low unit labour costs in both low-technology (high labour-intensive) and medium- or high-tech sectors. On the other hand, domestic accumulation of physical capital is associated with positive and large RCAs in medium- or high technology sectors. The international disadvantage (negative RCAs) in technology-intensive production tends to deepen for countries with low human capital, whereas it diminishes for countries with large domestic markets importing technology through foreign capital goods.
Subjects:revealed comparative advantages
technological up-grading
JEL:F14
O10
ISBN:978-92-9230-135-4
Document Type:Working Paper
Appears in Collections:WIDER Research Papers, United Nations University (UNU)

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