Determinants of Diffusion and Downstreaming of Technology-Intensive Products in International Trade
45 Pages Posted: 7 Oct 2009
Date Written: October 6, 2009
Abstract
This paper presents and analyzes patterns of trade for a broad category of technology-intensive products, including ATP (advanced technology products), for a group of 15 economies in Asia, Europe, and the United States. Using export data from 1997-2006, we examine the rate of diffusion (distribution of exports over a wider group of economies) and downstreaming (shifting of exports to lower-income economies), by means of index numbers. We find that the degree of downstreaming is highly sector-specific and product-specific; e.g. there has been more downstreaming of electronics than chemicals, of consumer electronics than electronic components, and of certain basic chemicals than specialized products such as photographic film and cosmetics. The exports of many products not normally considered to be ATP continue to be concentrated in high-income economies. We discuss the roles of technology, national and sectoral innovation systems, government policies, and other factors in shaping the degree of diffusion and downstreaming.
Keywords: product cycle, advanced technology products, exports
JEL Classification: F14
Suggested Citation: Suggested Citation
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