New Trade Theory and Aggregate Export Equations: an Application of Panel Cointegration.

New trade theory suggests that improvements in the variety and quality of products may be as important as price competitiveness as an explanation of trade flows. This paper tests this proposition for export volumes for the G7 using relative cumulated investment as a proxy for innovation. Positive results are obtained using new panel cointegration techniques as well as more traditional methodologies.

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Year of publication:	1999
Authors:	Driver, R. ; Wren-Lewis, S.
Institutions:	Business School, University of Exeter
Subject:	INNOVATIONS \| INTERNATIONAL TRADE \| REGRESSION ANALYSIS

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Series:	Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	44 pages
Classification:	F12 - Models of Trade with Imperfect Competition and Scale Economies ; F14 - Country and Industry Studies of Trade ; C23 - Models with Panel Data
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008852348