Technology, investment and trade: empirical evidence for five Asia-Pacificcountries

Traditional models of international trade flows find that prices explain si gnificant growth in el:port market shares. In the new international trade t heory nonprice factors are seen to be of great importance for the explanati on of trade. Following Magnier and Toujas-Bernate (Weltwirtschaftliches Arc hiv., 130, 1994), this study introduces nonprice factors, namely gross fixe d investment and technology (number of patents accepted), into the export m arket share equation. Empirical estimation is carried out on five Asia-Paci fic countries for the period 1978 to 1993. Results are similar to those of Magnier and Toujas-Bernate (1994) for the OECD, which show that nonprice fa ctors have played an important role in determining export market share duri ng the last decade.