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 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.

Bibliographic Details

Main Authors:	Mody, Ashoka, Yilmaz, Kamil
Format:	Journal Article biblioteca
Language:	English en_US
Published:	Washington, DC: World Bank 2002-01
Subjects:	ABSORPTIVE CAPACITY, AVERAGE EXCHANGE RATE, AVERAGE PRICE, BUSINESSES, BUYER, CAPABILITIES, CAPABILITY, CAPITAL GOODS, CAPITAL STOCK, COMMODITY, COMPETITIVENESS, CONSUMER GOODS, COST REDUCTION, COUNTRY FIXED EFFECTS, CURRENCY, DEMAND CURVE, DEMAND FUNCTION, DEMAND FUNCTIONS, DEPENDENT VARIABLE, DEPRECIATION, DEPRECIATION RATE, DEREGULATION, DESCRIPTIVE STATISTICS, DEVELOPING COUNTRIES, DEVELOPING ECONOMIES, DEVELOPING ECONOMY, DEVELOPMENT ECONOMICS, DEVELOPMENT STRATEGIES, DISECONOMIES OF SCALE, DOLLAR VALUE, DOMESTIC CAPITAL, DOMESTIC DEMAND, DOMESTIC ECONOMY, DOMESTIC MARKET, DOMESTIC MARKETS, E-MAIL, E-MAIL ADDRESS, ECONOMETRIC ANALYSIS, ECONOMIC ACTIVITY, ECONOMIC GROWTH, ECONOMIC RESEARCH, ECONOMIES OF SCALE, EFFECTIVE EXCHANGE RATE, EFFECTIVE EXCHANGE RATES, ELASTICITY, ELECTRICITY, ENERGY PRICE, EQUIPMENT, EXCHANGE RATE, EXCHANGE RATE MOVEMENTS, EXCHANGE RATES, EXPECTED VALUE, EXPLANATORY VARIABLE, EXPLANATORY VARIABLES, EXPORT COMPETITIVENESS, EXPORT DEVELOPMENT, EXPORT GOODS, EXPORT GROWTH, EXPORT INCENTIVES, EXPORT MARKETS, EXPORT SECTOR, EXPORTER, EXPORTERS, EXPORTS, FACTOR DEMAND, FEDERAL RESERVE, FOREIGN BUYERS, FOREIGN DIRECT INVESTMENT, FUNCTIONAL FORMS, GDP, GLOBAL ECONOMY, GOVERNMENT POLICIES, GROSS DOMESTIC PRODUCT, GROWTH RATE, GROWTH RATES, GROWTH THEORIES, HOME MARKET, HUMAN CAPITAL, ID, IMPERFECT COMPETITION, IMPERFECT SUBSTITUTES, IMPORT, IMPORT BARRIERS, IMPORT CONTROLS, IMPORTS, INCOME, INCOMES, INDIVIDUAL FIRM, INDUSTRIAL DEVELOPMENT, INNOVATION, INPUT PRICES, INSTALLATION, INTELLECTUAL PROPERTY, INTELLECTUAL PROPERTY RIGHTS, INTERNATIONAL COMPARISONS, INTERNATIONAL COMPETITION, INTERNATIONAL COMPETITIVENESS, INTERNATIONAL ECONOMICS, INTERNATIONAL FINANCIAL STATISTICS, INTERNATIONAL MARKETS, INTERNATIONAL TRADE, INVENTORY, INVESTMENT DEMAND, INVESTMENT RATE, LOCAL CURRENCY, LOCALIZATION, MANUFACTURING, MARGINAL COST, MARGINAL COSTS, MARKET POWER, MARKET PRICE, MARKET SHARES, MARKETING, MATERIAL, MONETARY ECONOMICS, OUTPUT, PC, PRICE BEHAVIOR, PRICE ELASTICITIES, PRICE ELASTICITY, PRICE ELASTICITY OF DEMAND, PRICE INDEX, PRICE INDEXES, PRICE OF EXPORTS, PRICE OF INVESTMENT GOODS, PRICE TAKERS, PRIVATE CAPITAL, PRODUCTION COSTS, PRODUCTION FUNCTION, PRODUCTIVITY, PRODUCTIVITY GROWTH, PROFIT MARGINS, PROFIT MAXIMIZING, PROPERTY RIGHTS, PROTECTION OF INTELLECTUAL PROPERTY, PUBLIC POLICY, R&D, RANDOM DISTURBANCE, RESULT, RESULTS, STANDARD DEVIATION, STOCKS, SUBSTITUTE, SUBSTITUTES, SUBSTITUTION, SUPPLIER, TARGET MARKETS, TECHNOLOGICAL ADVANCE, TECHNOLOGICAL INNOVATION, TRADE BARRIERS, TRADE CONTROLS, TRADE LIBERALIZATION, TRADE POLICY, TRADE REGIME, TRADE REGIMES, TRADE STRATEGY, TRANSMISSION, USERS, VALUE INDEX, VARIABLE INPUTS, VARIANCE-COVARIANCE MATRIX, VOLATILITY, WAGES, WORLD MARKET, WORLD MARKET SHARES, WORLD PRICE,
Online Access:	http://documents.worldbank.org/curated/en/2002/01/17737133/imported-machinery-export-competitiveness https://hdl.handle.net/10986/17189
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