Technological convergence and trade patterns

Textbook trade theory would suggest that emerging and developing countries specialize in lower-tech industries. In this paper the authors take a dynamic view on development and trade integration and distinguish three types of catching-up processes (the continuous-convergence approach, the climbing-up-the-ladder approach and the jumping-up approach). Using data for 25 countries and 32 industries the authors empirically analyze the different patterns of catching up over the period from 1981 to 1997. Further, they discuss linkages between technological convergence, dynamics of comparative advantage and trade patterns. JEL no. F14, L6, O10, O14, O30, O41.