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Technology Diffusion through Trade with Heterogeneous Firms

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  • Bulent Unel

Abstract

I investigate the long‐run implications of trade and technology diffusion through trade, when firms are heterogeneous and trade is costly. This paper integrates firm heterogeneity and trade into a product innovation growth model from endogenous growth theory. I find that although exposure to trade increases average productivity, it has an ambiguous effect on economic growth and consumer welfare.

Suggested Citation

  • Bulent Unel, 2010. "Technology Diffusion through Trade with Heterogeneous Firms," Review of International Economics, Wiley Blackwell, vol. 18(3), pages 465-481, August.
    • Handle: RePEc:bla:reviec:v:18:y:2010:i:3:p:465-481
    DOI: 10.1111/j.1467-9396.2010.00880.x
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    1. Baldwin, Richard E. & Robert-Nicoud, Frederic, 2008. "Trade and growth with heterogeneous firms," Journal of International Economics, Elsevier, vol. 74(1), pages 21-34, January.
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    1. Baldwin, Richard E. & Robert-Nicoud, Frederic, 2008. "Trade and growth with heterogeneous firms," Journal of International Economics, Elsevier, vol. 74(1), pages 21-34, January.
    2. Maemir, H. & Ziesemer, T., 2014. "Multinational production and trade in an endogenous growth model with heterogeneous firms," MERIT Working Papers 2014-038, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. katsufumi, fukuda, 2012. "Gains and Losses from International Trade in a Knowledge-driven Semi-endogenous Growth Model with Heterogeneous Firms," MPRA Paper 40818, University Library of Munich, Germany, revised 22 Aug 2012.
    4. Naito, Takumi, 2012. "A Ricardian model of trade and growth with endogenous trade status," Journal of International Economics, Elsevier, vol. 87(1), pages 80-88.
    5. Katsufumi Fukuda, 2013. "The Effect of Globalization in an Endogenous Growth Model with Heterogeneous Firms and Endogenous International Spillovers: Note," Discussion Paper Series DP2013-24, Research Institute for Economics & Business Administration, Kobe University.
    6. Tuan Anh Luong, 2013. "Special Issue. Guest Editor: Zhihao Yu," Review of Development Economics, Wiley Blackwell, vol. 17(3), pages 461-473, August.
    7. Patricia Hofmann, 2008. "Globalization and Technical Progress: Channels of Reciprocal Interaction A Literature Review," DEGIT Conference Papers c013_011, DEGIT, Dynamics, Economic Growth, and International Trade.
    8. Julian P. Christ & Patricia Hofmann, 2010. "International Openness and Patent Activity: First Descriptive Results Very preliminary draft," DEGIT Conference Papers c015_055, DEGIT, Dynamics, Economic Growth, and International Trade.
    9. Antonio Navas, 2018. "Technology and the dynamics of comparative advantage," Review of International Economics, Wiley Blackwell, vol. 26(1), pages 140-164, February.
    10. Frédéric Olland, 2012. "Asymmetries with R&D-Driven Growth and Heterogeneous Firms," Working Papers of BETA 2012-16, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    11. Katsufumi Fukuda, 2013. "The Effect of Globalization in a Semi Endogenous Growth Model with Firm Heterogeneity, Endogenous International Spillover, and Trade," Discussion Paper Series DP2013-21, Research Institute for Economics & Business Administration, Kobe University.
    12. Wu, Tommy T., 2015. "Firm heterogeneity, trade, multinationals, and growth: A quantitative evaluation," Journal of International Economics, Elsevier, vol. 97(2), pages 359-375.
    13. Dinopoulos, Elias & Unel, Bulent, 2011. "Quality heterogeneity and global economic growth," European Economic Review, Elsevier, vol. 55(5), pages 595-612, June.
    14. Dinopoulos, Elias & Unel, Bulent, 2013. "A simple model of quality heterogeneity and international trade," Journal of Economic Dynamics and Control, Elsevier, vol. 37(1), pages 68-83.

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