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East Asian Economic Review Vol. 10, No. 1, 2006. pp. 59-95.

DOI https://dx.doi.org/10.11644/KIEP.JEAI.2006.10.1.152

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Measuring a Country's Product Ladder and Technology Level based on Trade Flow

Author

Jong-il Kim

Dongguk University

jongil@dgu.ac.kr

Sung-ah Lee

Dongguk University

sungahl@hanmail.net
Creative Commons Attribution License

EAER is an open access journal distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license.

Abstract

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.

JEL classification: F18, O24, O47

Keywords

Product Ladder, Technology Level, Trade Flow

Language

Korean

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