Economic Review, Vol. 73 No. 6, 2022.
Original scientific paper
https://doi.org/10.32910/ep.73.6.5
UNTAPPED POTENTIAL AND HIGH-TECH TRADE: THE CASE OF ASEAN-6 COUNTRIES’ EXPORTS
Nguyen Khanh Doanh
Ha Trong Quynh
Nguyen Thi Thanh Xuan
Abstract
This study aims to quantify the impact of untapped export potential on ASEAN-6 countries’ high-tech exports for the 2006-2016 period. Our innovative aspect sheds new light on the relationship between the untapped export potential in the previous year and export performance in the current year. Using a system GMM estimator, we found several significant results. Firstly, untapped export potential in the last year has a positive impact on ASEAN-6 countries’ high-tech exports in the current year. Secondly, the effect of untapped export potential on ASEAN-6 countries’ high-tech exports depends on supply competencies (ASEAN-6 countries’ human capital and research and development capability) and the bilateral linkage (importing countries’ trade barriers and institutional similarity between ASEAN-6 countries and importing countries). Thirdly, supply competencies are the most important when ASEAN-6 countries export high-tech goods to high-income countries. In contrast, the bilateral linkage is the most crucial when ASEAN-6 countries ship high-tech products to low-income countries. Measures to enhance human capital, upgrade research and development capability, promote trade liberalization, and minimize the institutional distance with the trading partners are the remedy for ASEAN-6 countries to tap the untapped potential.
Keywords
Untapped potential; high-tech exports; ASEAN; supply competencies; bilateral linkage.
Hrčak ID:
288013
URI
Publication date:
21.12.2022.
Visits: 476 *