Winners and losers in a North-South model of growth, innovation and product cycles
AbstractThe paper examines the welfare gains from North-South trade and their distribution. We construct an endogenous growth North-South model with four Southern stages of development as possible equilibria: specialisation in a traditional good; the South in addition copies Northern high-tech manufactured goods; the South begins to innovate in its own right and finally a stage in which the South only innovates, as in the North. We use this model to show that dynamic gains from trade and from Southern development through the stages can create new winners, unskilled workers in the North and possibly skilled workers in the South.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Development Economics.
Volume (Year): 65 (2001)
Issue (Month): 2 (August)
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Web page: http://www.elsevier.com/locate/devec
Other versions of this item:
- Chui, Michael & Levine, Paul L & Pearlman, Joseph, 1999. "Winners and Losers in a North-South Model of Growth, Innovation and Product Cycles," CEPR Discussion Papers 2291, C.E.P.R. Discussion Papers.
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
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