Exports, product differentiation and knowledge spillovers

Miguel León-Ledesma

Empirical studies on aggregate export behaviour have recently emphasised the role played by innovation as the main force driving product differentiation and competitiveness for developed countries. These studies treat foreign innovation as a variable that affects negatively national export shares. We incorporate the impact of foreign innovation in a standard new trade theory model and find that, if knowledge spillovers exist, foreign knowledge accumulation could even have a positive effect on national exports. We then test the model using aggregate export data for a set of 21 OECD economies and find that the foreign stock of knowledge affects exports positively for the less advanced countries in the sample and has no impact on exports for the G7 economies. -- knowledge spillovers ; product differentiation ; export functions ; panel cointegration

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Year of publication:	July 2002 ; [Elektronische Ressource]
Other Persons:	León-Ledesma, Miguel A. (contributor)
Institutions:	University of Kent / Department of Economics (contributor)
Publisher:	Canterbury : Univ. of Kent, Dep. of Economics
Subject:	Wissenstransfer \| Knowledge transfer \| Spillover-Effekt \| Spillover effect \| Internationaler Wettbewerb \| International competition \| Produktdifferenzierung \| Product differentiation \| Innovation \| OECD-Staaten \| OECD countries