Determinants of Diffusion and Downstreaming of Technology-Intensive Products in International Trade

45 Pages Posted: 7 Oct 2009

See all articles by Lauren Deason

Lauren Deason

Government of the United States of America - International Trade Commission; University of Maryland

Michael J. Ferrantino

Trade Policy Research Forum

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

Deason, Lauren and Ferrantino, Michael J., Determinants of Diffusion and Downstreaming of Technology-Intensive Products in International Trade (October 6, 2009). Available at SSRN: https://ssrn.com/abstract=1483853 or http://dx.doi.org/10.2139/ssrn.1483853

Lauren Deason

Government of the United States of America - International Trade Commission

500 E Street, S.W.
Washington, DC 20436
United States

University of Maryland

College Park
College Park, MD 20742
United States

Michael J. Ferrantino (Contact Author)

Trade Policy Research Forum ( email )

13 Yucca Drive
Fredericksburg, VA Virginia 22405
United States

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