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Oxford Economic Papers Advance Access published online on April 26, 2007
Oxford Economic Papers, doi:10.1093/oep/gpm014
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© Oxford University Press 2007 All rights reserved

Innovations and manufacturing export performance in the OECD countries

Jakob B. Madsen

Department of Economics, Monash University, Clayton, Victoria 3800, Australia; e-mail: Jakob.madsen{at}buseco.monash.edu.au


  Abstract

This paper addresses two puzzles in international trade, namely why traditional estimates of income elasticities of exports are implausibly high and why export growth varies much more markedly across countries than can be explained by changes in price competitiveness and variations in income growth in export markets. Using data for 18 OECD countries it is shown that market integration and the level of technology and competitiveness can, to some extent, explain these two puzzles.

Key Words: JEL classifications: F10 • O30


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