Gains and Losses from International Trade in a Knowledge-driven Semi-endogenous Growth Model with Heterogeneous Firms
AbstractWe consider a semi endogenous R&D growth model with international trade, firm heterogeneity, and local knowledge spillover in a closed economy and international knowledge spillover in a symmetric two country economy. We show that by opening trade R&D difficulty (the number of varieties produced) and welfare are ambiguously affected. When the international spillover is large (small), the former is increased (decreased). When the size of the international knowledge spillover is large (small) or the size of the international knowledge spillover is small and the size of intertemporal knowledge spillover is small (large), the latter increases (decreses). Without intertemporal and international knowledge spillovers, welfare increases.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 40818.
Date of creation: 21 Aug 2012
Date of revision: 22 Aug 2012
Heterogeneous Firms; Semi Endogenous Growth; Gains and Losses from International Trade;
Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-03 (All new papers)
- NEP-CSE-2012-09-03 (Economics of Strategic Management)
- NEP-FDG-2012-09-03 (Financial Development & Growth)
- NEP-INT-2012-09-03 (International Trade)
- NEP-KNM-2012-09-03 (Knowledge Management & Knowledge Economy)
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