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Technology and economic inequality effects on international trade


Granda Gayo, Inés and Fonfría Mesa, Antonio (2009) Technology and economic inequality effects on international trade. [ Working Papers; nº WP02/0, ]


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The notion that technology plays a key role in explaining trade performed was supported
in the last decades by many empirical studies. In this paper we use a different perspective
trying to analyse the effects of technology and economic inequalities on international trade
inequalities. The theoretical framework where we built our empirical analysis is the technological
gap aproach. We considered eight European countries and 13 manufacture industries
in the time period 1995-2002. We made a panel data model with a cross-sectional
unit of analysis: the Euclidean distance among countries in each industry. We considered
the Euclidian distance as a proxy of inequality among countries in each industry. We observed
that technology and economic inequalities affect trade inequality and that the effect
depends on the technological contend of each industry.

Item Type:Working Paper or Technical Report
Uncontrolled Keywords:Technology Inequality, Trade Inequality, Euclidean Distance, Technological Contend
Subjects:Social sciences > Economics > World economy
Social sciences > Economics > Commerce
Series Name:Working Papers
ID Code:9674

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Deposited On:30 Nov 2009 08:45
Last Modified:06 Feb 2014 08:29

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