National Concentration of High-tech Products: The Second Great Divergence?

Ju, Jiandong and Lu, Bing and Yu, Xinding (2023): National Concentration of High-tech Products: The Second Great Divergence? Published in:

Abstract

Based on the product-country level trade data from 2004 to 2017, as well as the High-Tech Products Catalog from the US Census Bureau, this paper examines empirically the current phenomenon of “national concentration” in high-tech exports. The results show that the phenomenon of “national concentration” not only exists but also tends to be self-reinforcing. Compared with other products, the exports of high-tech products tend to be concentrated in certain countries, and this concentration trends were further strengthened after the global financial crisis of 2008–2009. The national concentration of R&D activities may be one of the important causes of the national concentration of high-tech products. This pattern remains robust when we further use the value-added export data and different definitions of high-tech products. We argue that the phenomenon of “national concentration” of high-tech exports may herald the arrival of the “Second Great Divergence” – the divergence between innovative and manufacturing activities – in the global economy.

• Item Type: MPRA Paper
• Language: English
• Keywords: high-tech products, national concentration, R&D, second great divergence
• Subjects: F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade

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