WHAT DETERMINES THE MEDIUM AND HICH TECHNOLOGY PRODUCTS EXPORTS: THE CASE OF GERMANY

Abstract

High-tech products are a key element of today's international trade. Ever-increasing technological development and constant globalization have made high-tech products indispensable. Innovation is the cornerstone of the production of medium and high-tech products. A key element to mention is that high-tech products are part of many intermediate goods. Germany is an example of a country specializing in the production of such products. The question that arises is what factors are the factors that drive the exports of high-tech products. One answer could be spent on research. Of course, in order for expenditure on R&D to be fully considered a key factor, it must be implemented through entrepreneurship in the real economy. It could also be foreign direct investment. However, there may be cases where foreign investments are a factor in the diffusion of know-how. Because of these ambiguities, a more complete framework for analysis should be created. This study will attempt to create a framework of analysis for exports of high-tech products using Germany as a case study. The methodology applied is the multiple linear regression - ordinary least squares (OLS). Keywords: Medium High-Tech Products, Exports, OLS.