Abstract: | Technology and Trade: Empirical Evidence for the Major Five Industrialized Countries. — The conclusion that prices alone cannot
explain the major disturbances in trade market shares emerges from many empirical studies on international trade flows. This
paper aims at introducing supply-side variables in market shares equations, namely R&D expenditures and gross fixed capital
formation, along the lines of the new theory on international trade and of the literature on technology and trade relations.
The empirical work is carried out on the major five industrialized countries and on twenty manufacturing industries. The results
show that the supply-side variables have played a crucial role over the last decade. |