Imported Machinery for Export Competitiveness
This article analyzes the relationship between export competitiveness and investment in machinery, allowing for imperfect substitution between domestically produced and imported machinery. A trans log export price function is estimated for develope...
| Main Authors: | , |
|---|---|
| Format: | Journal Article |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2002/01/17737133/imported-machinery-export-competitiveness http://hdl.handle.net/10986/17189 |
| Summary: | This article analyzes the relationship
between export competitiveness and investment in machinery,
allowing for imperfect substitution between domestically
produced and imported machinery. A trans log export price
function is estimated for developed, export oriented
developing, and import substituting developing economies in
a panel data setting. Between 1967 and 1990 imported
machinery helped lower export prices for export oriented
developing economies. Moreover, throughout the period
imported machinery was not a substitute for domestic
machinery. Import substituting developing economies was
unable to harness imported machinery to reduce costs early
in the period, but from about the early 1980s, with the
opening of their trade regimes, they were able to benefit
from the cost reducing effect. The results imply that
innovative effort based on imported technologies can be a
precursor to the development of domestic innovation capabilities. |
|---|