Description: Imported Machinery for Export Competitiveness

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 develope...

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Bibliographic Details
Main Authors:	Mody, Ashoka, Yilmaz, Kamil
Language:	English en_US
Published:	Washington, DC: World Bank 2014
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&AMP;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 http://hdl.handle.net/10986/17189

Description
Summary:	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.

Imported Machinery for Export Competitiveness

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