Investigating The Effect of Technology Gap on industrial Trade: Using Gravity Model

Document Type : Research Paper

Authors

1 Professor of Economics, Department of Economics and management, payamenoor university, Tehran, Iran

2 Associate Professor of Economics, Department of Economics and management, payamenoor university, Tehran, Iran

3 Assistant Professor of Economics, Department of Economics and management, payamenoor university, Tehran, Iran

4 Ph.D. Students of Economics, Department of Economics and management, payamenoor university, Tehran, Iran

10.30465/jnet.2022.40182.1851

Abstract

Paying attention to the importance of international trade, analyzing and recognizing the country's trade relations and examining its obstacles and incentives play an effective role in the path of economic development, because international trade affects the growth rate of the economy through access to foreign markets. Technology has played a significant role in shaping trade patterns, and there is a significant relationship between trade and technology in empirical literature. It is important to evaluate the effect of distance and technological gap as a variable that can play as an obstacle or an incentive for the country's trade relations. Therefore, the gap in technological progress can be one of the most important determining bilateral trade and economic growth between countries. In the present study, 43 trading partner countries of Iran, which had the most trade with Iran between 2001 and 2020, were selected, and the relationship between the technology gap and the industrial trade was estimated using the gravity model and Panel-ARDL regression. The results showed that the gravity model is in place in Iran's economy in the long term. Also, in the long term, the technology gap between Iran and the commercial side, based on the index of research and development costs, will lead to a decrease in the trade of the industrial sector of Iran and its commercial partners. reducing Iran's technology gap with trading partner countries, it increases industrial trade

Keywords

References

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new economy and trad
Volume 17, Issue 3 - Serial Number 56
December 2022
Pages 149-174

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History

  • Receive Date: 10 February 2022
  • Revise Date: 03 July 2022
  • Accept Date: 05 September 2022

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