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Can Trade Really Hurt? An Empirical Follow-up on Samuelson’s Controversial Paper Author info | Abstract | Publisher info | Download info | Related research | Statistics Jurgen Bitzer
Holger Görg
Philipp J.H. Schröder
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This paper investigates Samuelson's (JEP, 2004) argument that technical progress of the trade partner may hurt the home country. We illustrate this prospect in a simple Ricardian model for situations with outward knowledge spillovers. Within this framework Samuelson's Act II effects may occur. Based on industry level panel data for seventeen OECD countries for the period 1973 to 2000 we show econometrically that the outflow of domestic knowledge via exports or FDI may have a negative impact on industry output in the home country. This is particularly so when exporting to technologically less advanced countries and, more specifically, China..
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Paper provided by University of Nottingham, GEP in its series Discussion Papers with number
08/34.
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Handle: RePEc:not:notgep:08/34Contact details of provider: Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD Phone: (44) 0115 951 5620 Fax: (0115) 951 4159 Web page: http://www.nottingham.ac.uk/economics/ More information through EDIRC
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Keywords: International R&D spillovers ; export driven spillovers ; outward foreign direct investment ; Other versions of this item:
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.: Krugman, Paul, 1980.
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Beata Smarzynska Javorcik, 2004.
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"Why Some Firms Export ,"
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