Trade, Knowledge Spillovers, and Growth
17 Pages Posted: 11 Jun 2000 Last revised: 14 Jul 2010
Date Written: October 1990
Abstract
In this paper, we examine one channel through which the trade regime might affect growth in the long run. We model endogenous technological progress that results from profit maximizing investments by far-sighted entrepreneurs. Productivity in the research lab depends upon the "stock of knowledge capital", a variable reflecting the state of scientific, engineering and industrial know-how in the local economy. We argue that local knowledge capital is likely to vary positively with the extent of contact between domestic agents and their counterparts in the international research and business communities, and that the number of such contacts increases with the level of commercial exchange. We derive the implications of this for the relationship between trade and growth.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
One Money, One Market: Estimating the Effect of Common Currencies on Trade
-
Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?
-
Does a Currency Union Affect Trade? The Time Series Evidence
By Reuven Glick and Andrew Kenan Rose
-
Does a Currency Union Affect Trade? The Time Series Evidence
By Reuven Glick and Andrew Kenan Rose
-
On Theories Explaining the Success of the Gravity Equation
By Simon J. Evenett and Wolfgang Keller
-
Estimating Trade Flows: Trading Partners and Trading Volumes
By Elhanan Helpman, Marc J. Melitz, ...
-
An Estimate of the Effect of Common Currencies on Trade and Income