The effects of competition on technological and trade competitiveness

In recent years there has been a considerable interest in the relationship between trade and technological competitiveness. The paper analyzes the changes in both trade and technological competitiveness and further examines the relationship between these and the level of domestic competition among enterprises in nine developed and developing countries. On the basis of both a country and an industry analysis, the paper reveals several distinctive patterns in the transformation of trade and technological competitiveness and finds a statistically significant relationship between the changes in these and the level of domestic competition in a number of industries in the sample countries.