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Trade and Technical Progress

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Author Info
John F. Helliwell
Abstract

Using annual data 1963-1989 for technical progress in GECD countries (as measured by Solow residuals constructed using GECD data made internationally comparable through the use of purchasing power parties), the paper first shows that there has been significant international convergence in the rates of technical progress, with the initially poorer countries having faster technical progress. Country effects are found to be more significant than year effects, so subsequent analysis of the effects of trade on the growth of technology are done using 27 annual cross-sections of 19 countries each, with cross-equation restrictions applied and tested. The results suggest that both the level data and rate of increase in trade intensity lead to more rapid technical progress, with some additional effect from country size. Finally, there appears to be no evidence that countries with higher investment rates have had faster rates of technical progress, once the capital-deepening effects of investment have been taken into account via the production function used to define the Solow residuals.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4226.

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Date of creation: Dec 1992
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Handle: RePEc:nbr:nberwo:4226

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  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October. [Downloadable!] (restricted)
  2. Dowrick, Steve & Gemmell, Norman, 1991. "Industrialisation, Catching Up and Economic Growth: A Comparative Study across the World's Capitalist Economies," Economic Journal, Royal Economic Society, vol. 101(405), pages 263-75, March. [Downloadable!] (restricted)
  3. repec:fth:harver:1532 is not listed on IDEAS
  4. Tamura, Robert, 1991. "Income Convergence in an Endogenous Growth Model," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 522-40, June. [Downloadable!] (restricted)
  5. Abramovitz, Moses, 1990. "The Catch-Up Factor in Postwar Economic Growth," Economic Inquiry, Oxford University Press, vol. 28(1), pages 1-18, January.
  6. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," NBER Working Papers 3120, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Harrison, Ann, 1991. "Openness and growth : a time series, cross-country analysis for developing countries," Policy Research Working Paper Series 809, The World Bank. [Downloadable!]
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  8. Grossman, Gene M & Helpman, Elhanan, 1991. "Quality Ladders and Product Cycles," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 557-86, May. [Downloadable!] (restricted)
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  9. John F. Helliwell & Alan Chung, 1991. "Macroeconomic Convergence: International Transmission of Growth and Technical Progress," NBER Chapters, in: International Economic Transactions: Issues in Measurement and Empirical Research, pages 388-436 National Bureau of Economic Research, Inc. [Downloadable!]
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  11. Stokey, Nancy L, 1991. "Human Capital, Product Quality, and Growth," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 587-616, May. [Downloadable!] (restricted)
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  12. Mankiw, N Gregory & Romer, David & Weil, David N, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 407-37, May. [Downloadable!] (restricted)
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  13. David K. Backus & Patrick J. Kehoe & Timothy J. Kehoe, 1992. "In search of scale effects in trade and growth," Staff Report 152, Federal Reserve Bank of Minneapolis. [Downloadable!]
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  14. Lucas, Robert E, Jr, 1990. "Why Doesn't Capital Flow from Rich to Poor Countries?," American Economic Review, American Economic Association, vol. 80(2), pages 92-96, May. [Downloadable!] (restricted)
  15. Helliwell, John F. & Chung, Alan, 1986. "Aggregate output with variable rates of utilization of employed factors," Journal of Econometrics, Elsevier, vol. 33(1-2), pages 285-310. [Downloadable!] (restricted)
  16. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October. [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. De Long, J Bradford & Summers, Lawrence H, 1991. "Equipment Investment and Economic Growth," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 445-502, May. [Downloadable!] (restricted)
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(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. Charbel Macdissi & Syoum Negassi, 2002. "International R&D Spillovers: An Empirical Study," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 11(2), pages 77-91, January. [Downloadable!] (restricted)
  2. David T. Coe & Elhanan Helpman, 1995. "International R&D Spillovers," NBER Working Papers 4444, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. de la Fuente, Angel, 2000. "Convergence Across Countries And Regions: Theory And Empirics," CEPR Discussion Papers 2465, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  4. Steve Dowrick, 1994. "Openness and Growth," RBA Annual Conference Volume, in: Philip Lowe & Jacqueline Dwyer (ed.), International Intergration of the Australian Economy Reserve Bank of Australia. [Downloadable!]
  5. Nicholas Vasilakos & Nikolay Zubanov, 2009. "Income Convergence and R&D Intensity in OECD Manufacturing Industries: A Panel Study," Discussion Papers 09-09, Department of Economics, University of Birmingham. [Downloadable!]
  6. Hoen, Alex Roelof, 2000. "Covergence And Divergence In The European Union," ERSA conference papers ersa00p55, European Regional Science Association. [Downloadable!]
  7. Richard H. Clarida, 1993. "International Capital Mobility, Public Investment and Economic Growth," NBER Working Papers 4506, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. John F. Helliwell, 1994. "International Growth Linkages: Evidence from Asia and the OECD," NBER Working Papers 4245, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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