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International Trade, Technology Transfer, Growth, and Welfare in a Schumpeterian Model of Endogenous Growth

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  • Kim, Tae-Hyung

Abstract

This paper provides a simple analysis of the role of international technology transfer in the determination of the long-run pattern of trade, growth, and welfare in a two-country world within an endogenous growth framework. It is shown how the possibility and form of technology transfer impinge upon the long-run pattern of trade and therefore long-run growth rates and welfare. The most interesting finding of this paper is that, under certain conditions, there is a case in which restricted trade is growth- and welfare-enhancing compared with free trade. Copyright 1999 by Blackwell Publishing Ltd.

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  • Kim, Tae-Hyung, 1999. "International Trade, Technology Transfer, Growth, and Welfare in a Schumpeterian Model of Endogenous Growth," Review of International Economics, Wiley Blackwell, vol. 7(1), pages 37-49, February.
    • Handle: RePEc:bla:reviec:v:7:y:1999:i:1:p:37-49
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