Economic Growth and Regional Development - Reconsideration of Economic Effects of New Technology on Export-led Economic Growth

Economic Growth and Regional Development

  This paper has introduced two technologies, traditional and new, to produce one commodity into the Heckscher-Ohlin-Samuelson framework a la Professor Mundlak. As is usually understood, it seems much plausible that we had capital-using technological progress not only in the new technology in export commodity but also in the traditional technology in export commodity during the export-led high economic growth. Contrary to this conjecture, this paper has proved technological progress only in the new technology in export commodity, or rapid technological progress in the new technology in export commodity, can consistently explain the simultaneous occurrence of both term-of-trade improvement and export expansion. This finding could contribute for clarifying the process of export-led high economic growth and can give a useful implication for the way of economic cooperation among East Asian countries.