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Phases of Imitation and Innovation in a North-South Endogenous Growth Model

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Author Info
Chui, Michael
Currie, David
Levine, Paul L
Pearlman, Joseph

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Abstract

In this paper, we develop a North-South endogenous growth model to examine three phases of development in the South: imitation of Northern products; imitation and innovation; and finally, innovation only. In particular, the model has the features of catching up (and potentially overtaking), which are of particular relevance to the Pacific Rim economies. We show that the possible equilibria depend on cross-country assimilation effects and the ease of imitation. We then apply the model to analyse the impact of R&D subsidies. There are some clear global policy implications which emerge from our analysis. First, because subsidies to Southern innovation benefit the North as well, it is beneficial to the North to pay for some of these subsidies. Second, because the ability of the South to assimilate Northern knowledge and innovate depends on Southern skills levels, the consequent spillover benefits on growth make the subsidizing of Southern education by the North particularly attractive.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1489.

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Date of creation: Oct 1996
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Handle: RePEc:cpr:ceprdp:1489

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Related research
Keywords: Growth; Imitation; Innovation; Subsidies;

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Find related papers by JEL classification:
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

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Segerstrom, Paul S, 1991. "Innovation, Imitation, and Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 807-27, August. [Downloadable!] (restricted)
    Other versions:
  2. Stokey, Nancy L, 1995. "R&D and Economic Growth," Review of Economic Studies, Blackwell Publishing, vol. 62(3), pages 469-89, July. [Downloadable!] (restricted)
  3. Dinopoulos, Elias & Oehmke, James F. & Segerstrom, Paul S., 1993. "High-technology-industry trade and investment : The role of factor endowments," Journal of International Economics, Elsevier, vol. 34(1-2), pages 49-71, February. [Downloadable!] (restricted)
  4. Grossman, Gene M & Helpman, Elhanan, 1990. "Comparative Advantage and Long-run Growth," American Economic Review, American Economic Association, vol. 80(4), pages 796-815, September. [Downloadable!] (restricted)
    Other versions:
  5. Devereux, Michael B & Lapham, Beverly J, 1994. "The Stability of Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, MIT Press, vol. 109(1), pages 299-305, February. [Downloadable!] (restricted)
    Other versions:
  6. Brezis, Elise S & Krugman, Paul R & Tsiddon, Daniel, 1993. "Leapfrogging in International Competition: A Theory of Cycles in National Technological Leadership," American Economic Review, American Economic Association, vol. 83(5), pages 1211-19, December. [Downloadable!] (restricted)
  7. 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)
  8. Helpman, Elhanan, 1993. "Innovation, Imitation, and Intellectual Property Rights," Econometrica, Econometric Society, vol. 61(6), pages 1247-80, November. [Downloadable!] (restricted)
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  9. Paul Krugman, 1989. "Is Bilateralism Bad?," NBER Working Papers 2972, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Barro, R.J. & Sala-I-Martin, X., 1991. "Convergence," Papers 645, Yale - Economic Growth Center.
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  11. Jones, Charles I, 1995. "Time Series Tests of Endogenous Growth Models," The Quarterly Journal of Economics, MIT Press, vol. 110(2), pages 495-525, May. [Downloadable!] (restricted)
  12. Chou, Chien-Fu & Shy, Oz, 1991. "A Model of Technology Gap, Product Cycle, and the Process of Catching Up between the North and the South," The Economic Record, The Economic Society of Australia, vol. 67(198), pages 217-26, September.
  13. 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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  14. 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)
    Other versions:
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Gavin Cameron, 2000. "The Sun Also Rises: Productivity Convergence Between Japan and the USA," Economics Series Working Papers 045, University of Oxford, Department of Economics. [Downloadable!]
    Other versions:
  2. Carlos A. Cinquetti, 2007. "Technology Service And Factor Intensity: The Export Impact From Multinationals," Anais do XXXV Encontro Nacional de Economia [Proceedings of the 35th Brazilian Economics Meeting] 056, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
  3. Rubin, Raphael, 2007. "Endogènisation des comportements migratoires des travailleurs qualifies induits par l’implantation des multinationales au Sud
    [Endogenization of qualified labor migration induced by the implanta    ," MPRA Paper 4602, University Library of Munich, Germany. [Downloadable!]
  4. Fidel Pérez Sebastián, 2001. "Growth And Public Support To Innovation And Imitation," Working Papers. Serie AD 2001-31, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie). [Downloadable!]
  5. Takanori Shimizu & Hisayuki Okamoto, 2005. "An analysis of stability of the north--south growth model of trade: Saddle-path stability of the generalized grossman--helpman model with skilled and unskilled labours," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 14(3), pages 299-317, September. [Downloadable!] (restricted)
  6. Ralf Ruhwedel & Michael Funke, 2000. "Export Variety and Export Performance: Empirical Evidence from East Asia," Quantitative Macroeconomics Working Papers 20006, Hamburg University, Department of Economics. [Downloadable!]
    Other versions:
  7. Wolf-Heimo GRIEBEN, 2004. "Globalization, Labor Market Rigidities and Multiple Equilibria," DEGIT Conference Papers c009_020, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
  8. Andre Varella Mollick & Joao Ricardo Faria & Pedro H. Albuquerque & Miguel A. Leon-Ledesma, 2005. "Can Globalisation Stop the Decline in Commodities' Terms of Trade? The Prebisch-Singer Hypothesis Revisited"," Studies in Economics 0510, Department of Economics, University of Kent. [Downloadable!]
  9. Wolf-Heimo Grieben, 2006. "Globalization with Labor Market Frictions and Non-Scale Growth," DEGIT Conference Papers c011_053, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
    Other versions:
  10. 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. [Downloadable!] (restricted)
    Other versions:
  11. Michael Funke & Ralf Ruhwedel, 2002. "Export variety and export performance: Empirical evidence for the OECD countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(1), pages 97-114, March. [Downloadable!] (restricted)
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