Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/203888 
Year of Publication: 
2002
Series/Report no.: 
wiiw Working Paper No. 23
Publisher: 
The Vienna Institute for International Economic Studies (wiiw), Vienna
Abstract: 
Recent developments in economic integration show rather diverse patterns of integration into the world economy. Some countries are remaining in the low-tech industries whereas other countries succeed in becoming competitive also in high-tech industries. In this paper we postulate that positioning oneself at the lower end in the spectrum of high-tech industries is more favourable to a country's long-term development than aiming at the upper end of low-tech industries. We argue that countries which specialize in the lower end of the medium-high-tech activities are rewarded by faster productivity increases also in the upper end of the high-tech industries. In contrast, early specialization in medium-low-tech branches yields positive spillovers mainly in the low-tech sector, which is not promotive to catching-up in high-tech industries. We sketch a theoretical outline of this idea and present econometric results including four aggregate manufacturing branches and 37 countries. In the econometric analysis we also include trade and FDI variables.
Subjects: 
trade and technology
unit root tests
patterns of catching-up
JEL: 
C22
C23
F14
L6
O14
O33
O41
Document Type: 
Working Paper

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