Measuring a Country's Product Ladder and Technology Level based on Trade Flow
This study tries to quantify the technology level of products based on the concept of product ladder. While many studies on country technology competitiveness use the aggregate indices such as total factor productivity and revealed comparative advantage, this study estimates the ranking of about 200...
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Format: | Article |
Language: | English |
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Korea Institute for International Economic Policy
2006-06-01
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Series: | East Asian Economic Review |
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Online Access: | http://dx.doi.org/10.11644/KIEP.JEAI.2006.10.1.152 |
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author | Jong-il Kim Sung-ah Lee |
author_facet | Jong-il Kim Sung-ah Lee |
author_sort | Jong-il Kim |
collection | DOAJ |
description | This study tries to quantify the technology level of products based on the concept of product ladder. While many studies on country technology competitiveness use the aggregate indices such as total factor productivity and revealed comparative advantage, this study estimates the ranking of about 2000 products in product ladder by using SITC 5 digit level export data. Based on the product ladder, this study measures the country and industry ranking and explores the characteristics of the ranking. It provides the international comparison of inter-industry and intra-industry ranking differences in product ladder. The statistical relationships between the ranking in product ladder and the determinants of technology level such as R&D and physical capital investment and wage, confirms that the measured ranking in product ladder could be regarded as an indirect indicator of technology level. The product ladder is applied to the estimation of production function to see the effect of the product differentiation on labor productivity. |
first_indexed | 2024-12-21T05:53:26Z |
format | Article |
id | doaj.art-0684fc2a422447d2a81e3524bdc202e9 |
institution | Directory Open Access Journal |
issn | 2508-1640 2508-1667 |
language | English |
last_indexed | 2024-12-21T05:53:26Z |
publishDate | 2006-06-01 |
publisher | Korea Institute for International Economic Policy |
record_format | Article |
series | East Asian Economic Review |
spelling | doaj.art-0684fc2a422447d2a81e3524bdc202e92022-12-21T19:13:54ZengKorea Institute for International Economic PolicyEast Asian Economic Review2508-16402508-16672006-06-011015995http://dx.doi.org/10.11644/KIEP.JEAI.2006.10.1.152Measuring a Country's Product Ladder and Technology Level based on Trade FlowJong-il Kim 0Sung-ah Lee 1Dongguk UniversityDongguk UniversityThis study tries to quantify the technology level of products based on the concept of product ladder. While many studies on country technology competitiveness use the aggregate indices such as total factor productivity and revealed comparative advantage, this study estimates the ranking of about 2000 products in product ladder by using SITC 5 digit level export data. Based on the product ladder, this study measures the country and industry ranking and explores the characteristics of the ranking. It provides the international comparison of inter-industry and intra-industry ranking differences in product ladder. The statistical relationships between the ranking in product ladder and the determinants of technology level such as R&D and physical capital investment and wage, confirms that the measured ranking in product ladder could be regarded as an indirect indicator of technology level. The product ladder is applied to the estimation of production function to see the effect of the product differentiation on labor productivity.http://dx.doi.org/10.11644/KIEP.JEAI.2006.10.1.152Product LadderTechnology LevelTrade Flow |
spellingShingle | Jong-il Kim Sung-ah Lee Measuring a Country's Product Ladder and Technology Level based on Trade Flow East Asian Economic Review Product Ladder Technology Level Trade Flow |
title | Measuring a Country's Product Ladder and Technology Level based on Trade Flow |
title_full | Measuring a Country's Product Ladder and Technology Level based on Trade Flow |
title_fullStr | Measuring a Country's Product Ladder and Technology Level based on Trade Flow |
title_full_unstemmed | Measuring a Country's Product Ladder and Technology Level based on Trade Flow |
title_short | Measuring a Country's Product Ladder and Technology Level based on Trade Flow |
title_sort | measuring a country s product ladder and technology level based on trade flow |
topic | Product Ladder Technology Level Trade Flow |
url | http://dx.doi.org/10.11644/KIEP.JEAI.2006.10.1.152 |
work_keys_str_mv | AT jongilkim measuringacountrysproductladderandtechnologylevelbasedontradeflow AT sungahlee measuringacountrysproductladderandtechnologylevelbasedontradeflow |