Technological Advancements Revolutionize Global Trade, Reshape Economic Landscapes Worldwide
The article examines how technology levels influence international trade using a gravity model. The researchers tweaked the usual trade equation to include factors like transportation costs, geographical closeness, and historical ties between trading countries. They considered if products were basic, unique, or high-tech. By looking at technology indicators like the TAI index and patent numbers, they found that trade heavily relies on the technological capabilities of both the exporters and importers. In simpler terms, how advanced a country's technology is affects how much they trade with others.