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Learning-By-Trading And Commercial Policy

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Author Info
MICHAEL WEBB
Abstract

I first review the evidence that trade directly promotes technological progress, and of the roles of preparing-by-doing and adapting-by-doing. I use a simple model to show that when trade directly promotes progress, there may be a first-best argument for temporarily subsidizing trade. In analyze learning-by-trading in combination with preparing-by-doing or adapting-by-doing, plus the intersectoral spread of acquired technology. Two policy conflicts can occur that reverse policy prescriptions over time, calling for the sequential use of trade impediments and subsidies or production taxes and subsidies. [F 13]

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Publisher Info
Article provided by Korean International Economic Association in its journal International Economic Journal.

Volume (Year): 7 (1993)
Issue (Month): 4 (December)
Pages: 1-15
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Handle: RePEc:taf:intecj:v:7:y:1993:i:4:p:1-15

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  1. Grossman, Gene M & Horn, Henrik, 1988. "Infant-Industry Protection Reconsidered: The Case of Informational Barriers to Entry," The Quarterly Journal of Economics, MIT Press, vol. 103(4), pages 767-87, November. [Downloadable!] (restricted)
    Other versions:
  2. Jeffrey I. Bernstein & M. Ishaq Nadiri, 1989. "Research and Development and Intraindustry Spillovers: An Empirical Application of Dynamic Duality," NBER Working Papers 2002, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Clemhout, S & Wan, H Y, Jr, 1970. "Learning-by-Doing and Infant Industry Protection," Review of Economic Studies, Blackwell Publishing, vol. 37(1), pages 33-56, January. [Downloadable!] (restricted)
  4. Wolfgang Mayer, 1984. "The Infant-Export Industry Argument," Canadian Journal of Economics, Canadian Economics Association, vol. 17(2), pages 249-69, May. [Downloadable!] (restricted)
  5. Rotemberg, Julio J., 1987. "Export promotion as a development strategy," Journal of Development Economics, Elsevier, vol. 26(2), pages 343-355, August. [Downloadable!] (restricted)
  6. Hashimoto, Masanori, 1982. "Minimum Wage Effects on Training on the Job," American Economic Review, American Economic Association, vol. 72(5), pages 1070-87, December. [Downloadable!] (restricted)
  7. Dahlman, Carl J. & Ross-Larson, Bruce & Westphal, Larry E., 1987. "Managing technological development: Lessons from the newly industrializing countries," World Development, Elsevier, vol. 15(6), pages 759-775, June. [Downloadable!] (restricted)
  8. Balassa, Bela, 1970. "Growth Strategies in Semi-Industrial Countries," The Quarterly Journal of Economics, MIT Press, vol. 84(1), pages 24-47, February. [Downloadable!] (restricted)
  9. Segerstrom, Paul S & Anant, T C A & Dinopoulos, Elias, 1990. "A Schumpeterian Model of the Product Life Cycle," American Economic Review, American Economic Association, vol. 80(5), pages 1077-91, December. [Downloadable!] (restricted)
  10. Jensen, Richard & Thursby, Marie, 1986. "A strategic approach to the product life cycle," Journal of International Economics, Elsevier, vol. 21(3-4), pages 269-284, November. [Downloadable!] (restricted)
  11. John L. Enos, 1962. "Invention and Innovation in the Petroleum Refining Industry," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 299-322 National Bureau of Economic Research, Inc. [Downloadable!]
  12. Teitel, Simon & Thoumi, Francisco E, 1986. "From Import Substitution to Exports: The Manufacturing Exports Experience of Argentina and Brazil," Economic Development and Cultural Change, University of Chicago Press, vol. 34(3), pages 455-90, April.
  13. Kyle Bagwell & R. Staiger, 1987. "The Role of Export Subsidies When Product Quality is Unknown," Discussion Papers 758, Northwestern University, Center for Mathematical Studies in Economics and Management Science. [Downloadable!]
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  14. Amsden, Alice H., 1986. "The direction of trade -- past and present -- and the learning effects of exports to different directions," Journal of Development Economics, Elsevier, vol. 23(2), pages 249-274, October. [Downloadable!] (restricted)
  15. Teubal, Morris, 1984. "The role of technological learning in the exports of manufactured goods: the case of selected capital goods in Brazil," World Development, Elsevier, vol. 12(8), pages 849-865, August. [Downloadable!] (restricted)
  16. Jeffrey I. Bernstein & M. Ishaq Nadiri, 1988. "Interindustry R&D Spillovers, Rates Of Return, and Production In High-Tech Industries," NBER Working Papers 2554, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  17. Rivera-Batiz, Luis A & Romer, Paul M, 1991. "Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 531-55, May. [Downloadable!] (restricted)
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  18. Fransman, Martin, 1982. "Learning and the capital goods sector under free trade: The case of Hongkong," World Development, Elsevier, vol. 10(11), pages 991-1014, November. [Downloadable!] (restricted)
  19. Rivera-Batiz, Luis A. & Romer, Paul M., 1991. "International trade with endogenous technological change," European Economic Review, Elsevier, vol. 35(4), pages 971-1001, May. [Downloadable!] (restricted)
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  20. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July. [Downloadable!] (restricted)
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