Drivers of technological export performance in Spain: A regional approach, 2000–2016

Abstract

Having a high export capacity is a core element of achieving sustained long-term economic growth. To attain this goal, the technological sophistication of exports plays a key role (Hausmann et al. 2007, Rodrik 2006, Minondo 2010). In the context of stimulating exports with a high level of sophistication, it is crucial to identify the main drivers of exports in general and of high-tech exports. Specifically, the aim of this article is to study the determinants of the international trade flows of manufacturers according to their technological content in the case of Spanish regions. The results obtained show strong evidence of the relevance of considering the technological content of manufacturers when studying the drivers of trade flows at the regional level. Moreover, the findings have significant implications for trade and industrial policies in Spain, a country that traditionally exhibits large trade imbalances, since these outcomes could enhance the effectiveness of policies targeting the technological upgrading of Spanish exports.