Does High Tech Exports Really Matter for Economic Growth a Panel Approach for Upper Middle-Income Economies

Abstract

In this study, we analyzed the data about the technological diversification of export composition of upper middle-income countries and the impact of the technological composition of exported goods on GDP growth. Using the dynamic panel data analysis techniques for 34 countries between 1995-2015, we confirmed that exports of high technological products will have a significant positive impact on economic growth for upper middle-income countries as well as medium technological products’ exports which have a limited effect. The exports of low-tech products will have a negative effect for economic growth in the long run.

Keywords

• economic growth
• export-led growth
• export composition
• pooled mean group estimate
• dynamic panel data analysis