Munich Personal RePEc Archive

Technology, investment and trade: empirical evidence for five Asia-Pacific countries

Madden, Gary G and Savage, Scott J and Thong, Su Yin (1999): Technology, investment and trade: empirical evidence for five Asia-Pacific countries. Published in: Applied Economics Letters , Vol. 6, No. 6 (1999): pp. 361-363.

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Abstract

Traditional models of international trade flows find that prices explain significant growth in export market shares. In the new international trade theory non-price factors are seen to be of great importance for the explanation of trade. Following Magnier and Toujas-Bernate (1994), this study introduces non-price factors, namely gross fixed investment and technology (number of patents accepted), into the export market share equation. Empirical estimation is carried out on five Asia-Pacific countries for the period 1978 to 1993. Results are similar to those of Magnier and Toujas-Bernate (1994) for the OECD, which show that non-price factors have played an important role in determining export market share during the last decade.

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