Advancing export sophistication: the critical role of technological innovation and total factor productivity

Given the importance of product scarcity, this study employs an iterative algorithm to more precisely measure the export sophistication of 200 countries over the period from 2002 to 2020. Furthermore, the study investigates the underlying mechanisms and transmission pathways through which technological innovation influences export sophistication. The empirical findings indicate that technological innovation significantly enhances export sophistication. Moreover, the impact of technological innovation on export sophistication exhibits heterogeneity across countries with different income levels, with a more pronounced effect in high-income countries. Additionally, technological innovation fosters export sophistication by increasing total factor productivity.