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Learning by Doing, the Technology Gap, and Growth

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  • Chuang, Yih-Chyi

Abstract

In contrast with other trade and growth theories in previous literature, The author resents a growth theory of trade-induced learning: other things being equal, two conditions are essential for trade-induced learning. First, both exports and imports are equally important sources and are mutually reinforced in intensifying the learning process. Moreover, the nature or characteristics of these traded goods also influence the effect of learning. Second, trade openness is a prerequisite but not a sufficient condition for rapid growth. With whom one trades (one's trading partner) is a key factor in determining trade-induced technology spillover and hence in affecting enduring growth. Therefore, this trade-induced learning theory provides abundant and testable implications for the empirical study of trade and growth. Copyright 1998 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

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Bibliographic Info

Article provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.

Volume (Year): 39 (1998)
Issue (Month): 3 (August)
Pages: 697-721

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Handle: RePEc:ier:iecrev:v:39:y:1998:i:3:p:697-721

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Cited by:
  1. Dreger, Christian & Herzer, Dierk, 2011. "A further examination of the export-led growth hypothesis," Discussion Papers 305, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
  2. Seung Mo Choi, 2005. "North-South Trades and Growth Miracles," GE, Growth, Math methods 0507013, EconWPA.
  3. Pieter J.H. van Beukering & Jeroen C.J.M. van den Bergh & Marco A. Janssen & Harmen Verbruggen, 2000. "International Material-Product Chains: An Alternative Perspective on International Trade and Trade Theories," Tinbergen Institute Discussion Papers 00-034/3, Tinbergen Institute.
  4. Hwee Kwan Chow, 2010. "Asian Tigers’ Choices: An Overview," Working Papers id:2928, eSocialSciences.
  5. Dierk HERZER & Felicitas NOWAK-LEHMANN D. & Boriss SILIVERSTOVS, 2006. "Export-Led Growth In Chile: Assessing The Role Of Export Composition In Productivity Growth," The Developing Economies, Institute of Developing Economies, vol. 44(3), pages 306-328.
  6. M. Herrerias & Vicente Orts, 2012. "Equipment investment, output and productivity in China," Empirical Economics, Springer, vol. 42(1), pages 181-207, February.
  7. Hwee Kwan Chow, 2010. "Asian Tigers’ Choices : An Overview," Trade Working Papers 21879, East Asian Bureau of Economic Research.
  8. Dierk Herzer, 2005. "Does Trade Increase Total Factor Productivity: Cointegration Evidence for Chile," Ibero America Institute for Econ. Research (IAI) Discussion Papers 115, Ibero-America Institute for Economic Research.
  9. Emine KILAVUZ & Betül ALTAY TOPCU, 2012. "Export and Economic Growth in the Case of the Manufacturing Industry: Panel Data Analysis of Developing Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 2(2), pages 201-215.
  10. Jolanda Hessels & André Stel, 2011. "Entrepreneurship, export orientation, and economic growth," Small Business Economics, Springer, vol. 37(2), pages 255-268, September.
  11. C. Veeramani, 2008. "Impact of imported intermediate and capital goods on economic growth: A Cross country analysis," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2008-029, Indira Gandhi Institute of Development Research, Mumbai, India.

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