Globalisation and Technology Intensity as Determinants of Exports

This paper augments traditional equations for estimating export demand with a measure of technology intensity of output, and several variables capturing the impact of regional integration and global trade liberalisation programmes. Using data for a panel of 20 OECD countries it is shown that the augmented long run relationships cointegrate and can be embedded into equilibrium correction form. The effects of technology and trade liberalisation were found to be stronger at times than the impact of competitiveness and together these variables help explain large changes in export shares in the presence of relatively little shifts in competitiveness.