Trade and the accumulation and diffusion of knowledge
AbstractThe author examines the properties of a dynamic disequilibrium model focused on trade specialization and the accumulation of knowledge. Steady state analysis shows that: a) under perfectly balanced growth international diffusion of knowledge is irrelevant for growth; and b) under unbalanced growth, the process of structural change may be enhanced by the effects on the domestic accumulation of knowledge of domestic spillover. The growth of foreign knowledge has an ambivalent effect on domestic performance because it is both a complement to, and a substitute for, domestic knowledge. Whenever these two effects do not perfectly match, the diffusion of international knowledge is associated with unbalanced growth. Imports of knowledge intensive goods may not lead to higher growth unless there is sufficiently strong trade performance in the knowledge -intensive sectors. Unbalanced growth is also associated with"output catching up"."Technological catching up"is necessary but not sufficient for balanced growth. Parameter estimates were obtained for France, Germany, Italy, Japan, and the United Kingdom. Results appear to be consistent with theoretical expectations about the importance of"price"and"nonprice"determinants of trade performance in the four sectors as well as with the distribution of revealed comparative advantages. Simulation exercises confirm steady-state results on the relevance of country differences in trade specialization and in the domestic accumulation of knowledge as they affect growth. They also clarify the relationship between growth and changes in the structure of trade specialization.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 1679.
Date of creation: 30 Nov 1996
Date of revision:
Health Monitoring&Evaluation; Environmental Economics&Policies; Public Health Promotion; Economic Theory&Research; Educational Sciences; Environmental Economics&Policies; Health Monitoring&Evaluation; Economic Theory&Research; Educational Sciences; Innovation;
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.:
- Keller, W., 1996.
"Are International R&D Spillovers Trade-Related? Analyzing Spillovers Among Randomly Matched Trade Partners,"
9607, Wisconsin Madison - Social Systems.
- Keller, Wolfgang, 1998. "Are international R&D spillovers trade-related?: Analyzing spillovers among randomly matched trade partners," European Economic Review, Elsevier, vol. 42(8), pages 1469-1481, September.
- Wolfgang Keller, 1996. "Are International R&D Spillovers Trade-related? Analyzing Spillovers among Randomly Matched Trade Partners," International Trade 9608002, EconWPA.
- Wolfgang Keller, 1997. "Are International R&D Spillovers Trade-Related? Analyzing Spillovers Among Randomly Matched Trade Partners," NBER Working Papers 6065, National Bureau of Economic Research, Inc.
- Antoine Magnier & Joël Toujas-Bernate, 1994. "Technology and trade: Empirical evidences for the major five industrialized countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(3), pages 494-520, September.
- Grossman, G.M. & Helpman, E., 1989.
"Growth And Welfare In A Small Open Economy,"
15-89, Tel Aviv.
- Coe, D.T. & Helpman, E., 1993.
"International R&D Spillovers,"
5-93, Tel Aviv.
- Ben-David, Dan & Loewy, Michael B, 1995.
"Free Trade and Long-Run Growth,"
CEPR Discussion Papers
1183, C.E.P.R. Discussion Papers.
- Fagerberg, Jan, 1988. "International Competitiveness," Economic Journal, Royal Economic Society, vol. 98(391), pages 355-74, June.
- Fagerberg, Jan, 1994. "Technology and International Differences in Growth Rates," Journal of Economic Literature, American Economic Association, vol. 32(3), pages 1147-75, September.
- Carter, Richard A. L. & Nagar, Anirudh L., 1977. "Coefficients of correlation for simultaneous equation systems," Journal of Econometrics, Elsevier, vol. 6(1), pages 39-50, July.
- Elhanan Helpman & David T. Coe, 1993. "International RandD Spillovers," IMF Working Papers 93/84, International Monetary Fund.
- Paul Romer, 1989.
"Endogenous Technological Change,"
NBER Working Papers
3210, National Bureau of Economic Research, Inc.
- Elhanan Helpman & David T. Coe & Alexander W. Hoffmaister, 1994. "North-South RandD Spillovers," IMF Working Papers 94/144, International Monetary Fund.
- Freeman, Chris & Hagedoorn, John, 1994. "Catching up or falling behind: Patterns in international interfirm technology partnering," World Development, Elsevier, vol. 22(5), pages 771-780, May.
- Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
- Padoan, Pier Carlo, 1998. "Trade, knowledge accumulation and diffusion: A sectoral perspective1," Structural Change and Economic Dynamics, Elsevier, vol. 9(3), pages 349-372, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.