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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Main Authors: Jong-il Kim, Sung-ah Lee
Format: Article
Language:English
Published: Korea Institute for International Economic Policy 2006-06-01
Series:East Asian Economic Review
Subjects:
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.
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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