Exchange rate and technology intensive exports: evidence from a group of developing countries

Summary form only given. This paper extends the disaggregated approach developed earlier to the high-technology sector of three developing countries of Brazil, India and South Korea. By identifying products at the four digit level of SITC classification, it examines the empirical impact of real exchange rates on the export competitiveness of technology-intensive manufacturers for these newly industrialized countries. The choice of these countries is based on the recent evidence of their high growth rates and of the increasing share of high-technology in their total trade over the past two and a half decades. The empirical analysis is cast in the traditional polynomial distributed lag model that estimates the delayed effects of exchange rate changes over the period 1964-1994. Utilizing the model, the current and lagged impact of exchange rate was estimated by employing time series data sets on exports and exchange rates for six of the high-technology product groups identified for each of the three selected countries