Heterogeneity of Trade Patterns in High-Tech Goods Across Established and Emerging Exporters: A Panel Data Analysis

This study aims to identify underlying fundamental factors behind high-tech exports by the established and emerging countries, separately. The author also examines whether the two export patterns converge over time. Based on the gravity approach, a generalized method of moments panel estimator is applied to rigorously address the endogeneity problem in both static and dynamic versions of the model. In addition, the nonstationary and cointegrating features of variables are discussed. The author finds that high-tech exports from the emerging countries are mainly based on foreign direct investment inflows and participation in the international production chain, as well as a high degree of export concentration, while high-tech exports from the established exporters are mainly linked to industrial infrastructures, research and development, and export diversification. Nevertheless, the two export patterns converge over time.