Determinants of Complex Exports: Evidence from Cross-Country Data for 1985-1998

High- and medium-tech exports (hereafter complex exports), refl ecting a nation’s technological capabilities, can bring a nation larger benefi ts from international trade than simple exports. What determines the complex exports? While the topic is quite important, the quantitative analysis on the issue in the literature has been limited. This paper attempts to close the gap by assessing factors that infl uence a nation’s complex exports with cross-country data for 1985-1998. The estimates suggest the following conclusions: (a) a nation’s industrial technology capability has a signifi cantly positive impact on its complex exports; (b) inward FDI fl ows may help raise per capita value of complex exports, but have no effect on the complex export share in total manufacturing exports; © infrastructure seems to have a positive impact on the complex export share, but no effect on per capita value of complex exports; and (d) the impact of skills on complex exports seems to be weak.