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Abstract
Many trade economists believe that the introduction of technical change into
an otherwise Heckscher-Ohlin (H-0) model could result in a more comprehensive
explanation of trade flows. However, most of the investigations of this
hypothesis have been based on the limiting assumption that technology is
exogenously determined, and have narrowly focused on the manufacturing
sector. In addition, most works on technology-based trade have dealt exclusively
with the United States, which is a significant drawback in testing theories
which seem to have originated with American observations in the first
place (Deardoff, 1985).
This study aims to fill part of this gap by analysing the relationship between
endogenous technology and international trade of the less developed countries
of Southeast Asia. It tests the significance of a technology-trade relationship in
both the agricultural and the agribased manufacturing sectors of their economies.
Since Asia is considered to be the most dynamic region of the world in
terms of economic growth and development, it is appropriate that this investigation
be conducted on an area where 'newly industrializing economies' have
originated and will continue to do so.