The effect of the knowledge economy on the exports of high-technology intensive goods

Increasing foreign demand for locally manufactured goods has been a central component of many economies. To achieve this, countries are nowadays more focused on increasing the technological content of their exports. This is because long-term growth depends not only on the countries’ exports but also on the technological content of their exports. Despite being a crucial driver of economic expansion, the export of high-technology-intensive goods and their determinants have not been well investigated by the existing studies. Therefore, this study contributes to filling this gap in knowledge by solely focusing on nine (9) major products exports with high technology content. To address the contending issue, this study aims to investigate the influence of the knowledge-based economy on high-technology manufacturing exports for 20 major exporting countries from 2012 to 2021. The data pertaining to major exporters of high-technology products, which have experienced remarkable growth in manufacturing, were analysed. The data were sourced from the United Nations Industrial Development Organisation. The sample countries are selected based on export performance and data availability. The study employed a dynamic panel data model based on system generalised method of moments (GMM) estimates. The empirical strategy revealed that the indicators of the knowledge economy have a significant impact on high-technology exports. Commodities such as HS-84 (nuclear reactors and boilers), HS-86 (railway trams and rolling stock), HS-87 (vehicles), HS-88 (aircraft and spacecraft), and HS-96 (miscellaneous manufactured articles) are positively affected by advanced education. At the same time, HS-30 (pharmaceuticals), HS-38 (miscellaneous chemical products), and HS-83 (miscellaneous articles of base metal) are negatively affected by advanced education. Internet usage increases commodity exports of HS-30, HS-38, and HS-83, as well as HS-87 and HS-96, and reduces commodity exports of HS-88. R&D only positively affects the exports of HS-30, HS-84, HS-86, HS-88, HS-90 (optical and precision equipment), and HS-96 commodities. Domestic credit is associated with a decrease in exports, while GDP promotes exports. The control of corruption and the exchange rate have varying effects on exports. These findings have significant implications for policymakers, as they can be aligned with the current policy framework to enhance the growth of high-technology manufacturing exports.