The technology balance of payments and international competitiveness: a panel data analysis of southern European countries, 2000-2017

Abstract

The scant literature that addresses issues related to the Technology Balance of Payments (TBP) often refers that a surplus balance may correspond to a high degree of technological autonomy, a low level of technology imports, or an inability to assimilate foreign technologies. It is not clear, however, from this literature whether, and to what extent, the balance of the TBP is related to countries’ international competitiveness. The purpose of this paper is to detail the evolution of the TBP for Southern European countries and to assess the extent to which it influences these countries’ international competitiveness. Using static and dynamic panel data techniques on data for four Southern European countries (Greece, Italy, Portugal and Spain) between 2000 and 2017, our results highlight that a positive TBP significantly contributes to foster countries’ international competitiveness.

Keywords

• technology balance of payments
• international competitiveness
• greece
• italy
• portugal
• spain
• panel data analysis