Macro-Economic Determinants of High Technology Exports

Abstract

An evaluation of the outcome of research and development is intrinsic for building a long-term foundation for economic development. The high technology exports are one indicator that can access the outcome of research and development of the economy. This study employed the data of high tech exports of 15 developed and developing economies during 2007-2018. The fixed effect regression estimates were analysed upon, validation of which is enumerated by the Hausman test. Two significant findings that the study implicates are, first, the benefits of an outward-oriented policy that has fewer tariff burdens will result in the promotion of high-tech exports. Secondly, the study is intrigued by the role of financial market development, which in turn is export-oriented, thereby reducing the foreign exchange burden. The enhanced access to financial markets and increased depth has proven to be congenial for high tech exports.