B. Anderton, Innovation, product quality, variety, and trade performance: an empirical analysis of Germany and the UK, OX ECON PAP, 51(1), 1999, pp. 152-167
Using the framework of the new trade and endogenous growth theories, this p
aper finds that factors such as innovation and product quality-proxied by v
ariables such as relative R&D and patenting activity-help to explain the de
termination of import volumes for both Germany and the UK. The econometric
work makes an original contribution to this area of research by using bilat
eral import volume data disaggregated to the four-digit ISIC level.