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It must be decided whether resources should be concentrated in one of the sectors (trade specialization) or instead allocated equally (trade equalization) between the two sectors.
If (a) the provinces of trade equalization are equally or less developed than the specialized provinces and (b) one can identify these provinces through different quantiles and (c) the coefficient of equalized provinces at the proper quantile is greater, it means that the equalization is more conducive to technological innovation.
The resources can instead be allocated equally between the two sectors, referred to as equalization (or trade equalization).
This paper analyzes the impact of trade equalization and specialization on different types of innovation.
Trade equalization mainly promotes incremental developments, while trade specialization improves radical innovation.
The findings show that trade equalization mainly promotes incremental innovation, while trade specialization improves radical innovation.
Similar(38)
In particular, the regression coefficient of the 60% fraction is greater than 80%, which means that with the consideration of resource constraints, equalization trade has made up for the inherent disadvantage of insufficient development of domestic trade as well as international trade.
Theory of comparative advantage and the international division of labor: the determinants and pattern of trade, factor price equalization, factor mobility, gains from trade and distribution of income, and theory and practice or tariffs and other trade restrictions.
The regression coefficient of the 60% quantile is greater than that of 20%, 40 % and 80, indicating that equalization trade is conducive to improving incremental innovation.
The matrix bandwidth parameter allows for a trade-off between equalization complexity and performance, and it can be chosen according to some rules of thumb [12].
If the regression coefficient of the 60% quantile is greater than that of 80%, one can conclude that equalization of trade makes up for the deficiency of trade development and is more conducive to the improvement of technology innovation compared with specialization of trade.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com