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Trade-induced Learning and Industrial Catch-up

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  • Ronald U. Mendoza

Abstract

This article develops a model of trade-induced learning whereby both domestic and cross-border learning externalities could drive long-run growth. This framework is used to synthesise the emerging empirical evidence, revealing how trade-induced learning could underpin the mechanics behind trade and growth in at least three important ways: first, trading matters, as firms might be able to increase their productivity due to export and import linkages with buyers and suppliers; second, whom you trade with matters, as richer and more technologically advanced trading partners offer more scope for trade-induced learning; and third, what products you trade matters. Copyright © The Author(s). Journal compilation © Royal Economic Society 2010.

Suggested Citation

  • Ronald U. Mendoza, 2010. "Trade-induced Learning and Industrial Catch-up," Economic Journal, Royal Economic Society, vol. 120(546), pages 313-350, August.
    • Handle: RePEc:ecj:econjl:v:120:y:2010:i:546:p:f313-f350
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    Cited by:

    1. Zongning Wu & Hongbo Cai & Ruining Zhao & Ying Fan & Zengru Di & Jiang Zhang, 2020. "A Topological Analysis of Trade Distance: Evidence from the Gravity Model and Complex Flow Networks," Sustainability, MDPI, vol. 12(9), pages 1-17, April.
    2. Gui-Diby, Steve Loris & Renard, Mary-Françoise, 2015. "Foreign Direct Investment Inflows and the Industrialization of African Countries," World Development, Elsevier, vol. 74(C), pages 43-57.
    3. Bolhuis, Marijn, 2019. "Catch-Up Growth and Inter-Industry Productivity Spillovers," MPRA Paper 94730, University Library of Munich, Germany.
    4. Baliamoune-Lutz, Mina, 2019. "Trade sophistication in developing countries: Does export destination matter?," Journal of Policy Modeling, Elsevier, vol. 41(1), pages 39-51.
    5. Josep Tomàs-Porres & Agustí Segarra-Blasco & Mercedes Teruel, 2023. "Export and variability in the innovative status," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(2), pages 257-279, June.
    6. Feng, Gen-Fu & Zheng, Mingbo & Wen, Jun & Chang, Chun-Ping & Chen, Yin E., 2019. "The assessment of globalization on innovation in Chinese manufacturing firms," Structural Change and Economic Dynamics, Elsevier, vol. 50(C), pages 190-202.
    7. Basant Kapur, 2015. "A symmetric Heckscher–Ohlin model of endogenous growth," Journal of Economics, Springer, vol. 116(3), pages 183-209, November.

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