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Does Technology Foster Trade? Empirical Evidence for Developed and Developing Countries

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  • Inmaculada Martínez-Zarzoso
  • Laura Márquez-Ramos

Abstract

This paper aims to investigate the effects of technology on international trade flows. In order to do so, the authors use a composite index designed to capture the performance of countries concerning technology and human knowledge as a new explanatory variable in an augmented gravity equation estimated for a sample of 62 developed and developing countries. Results show that geographical factors are always relevant, however geographical distance, being landlocked, technological and social factors seem to be more important for the poorest than for the richest countries. Transport infrastructure and technology can be considered as barriers to trade for those countries with lower endowment levels, therefore investing in these variables will increase the participation of the poorest countries in the world economy. Copyright IAES 2005

Suggested Citation

  • Inmaculada Martínez-Zarzoso & Laura Márquez-Ramos, 2005. "Does Technology Foster Trade? Empirical Evidence for Developed and Developing Countries," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 33(1), pages 55-69, March.
    • Handle: RePEc:kap:atlecj:v:33:y:2005:i:1:p:55-69
    DOI: 10.1007/s11293-005-1645-0
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    Cited by:

    1. Jan Van Hove, 2008. "The Impact of R&D Spillovers on Export Value: Does the Transmission Channel matter?," Working Papers 2008.3, International Network for Economic Research - INFER.
    2. Martinez-Zarzoso Inma & Márquez-Ramos Laura, 2008. "The Effect of Trade Facilitation on Sectoral Trade," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-46, September.
    3. Gilroy B. Michael & Lukas Elmar & Heimann Christian, 2013. "Technologiestandort Deutschland und internationale Wissensspillover / Technology Site Germany and International Knowledge Spillovers: Welchen Einfluss nehmen ausländische MNU auf deutsche Exporte? / W," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(5-6), pages 575-599, October.
    4. Tomasz Brodzicki, 2016. "The role of technology gap in the trade of Poland. Panel estimation in the gravity framework," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 41, pages 127-144.
    5. Tomasz Brodzicki & Katarzyna Sledziewska, 2015. "The role of the technology and innovation gap in Polish trade relations. Empirical verification with the use of trade gravity approach," Working Papers 1506, Instytut Rozwoju, Institute for Development.
    6. B. Michael Gilroy & Elmar Lukas & Christian Heimann, 2010. "Welchen Einfluss hat die Anwesenheit von ausländischen und multinationalen Unternehmungen auf die deutschen Exporte?," Working Papers CIE 31, Paderborn University, CIE Center for International Economics.

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    More about this item

    Keywords

    F14; O30;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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