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Winners and losers in a North-South model of growth, innovation and product cycles

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  • Chui, Michael
  • Levine, Paul
  • Pearlman, Joseph

Abstract

The paper examines the welfare gains from North-South trade and their distribution. We construct an endogenous growth North-South model with four Southern stages of development as possible equilibria: specialisation in a traditional good; the South in addition copies Northern high-tech manufactured goods; the South begins to innovate in its own right and finally a stage in which the South only innovates, as in the North. We use this model to show that dynamic gains from trade and from Southern development through the stages can create new winners, unskilled workers in the North and possibly skilled workers in the South.
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Suggested Citation

  • Chui, Michael & Levine, Paul & Pearlman, Joseph, 2001. "Winners and losers in a North-South model of growth, innovation and product cycles," Journal of Development Economics, Elsevier, vol. 65(2), pages 333-365, August.
  • Handle: RePEc:eee:deveco:v:65:y:2001:i:2:p:333-365
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Chu, Hsiao-Lei, 2009. "Product cycles among three regions with differential R&D abilities," Economic Modelling, Elsevier, vol. 26(1), pages 177-183, January.
    2. Stephen Drinkwater & Paul Levine & Emanuela Lotti & Joseph Pearlman, 2007. "The Immigration Surplus Revisited In A General Equilibrium Model With Endogenous Growth," Journal of Regional Science, Wiley Blackwell, vol. 47(3), pages 569-601.
    3. Angus C. Chu, 2009. "Macroeconomic Effects of Intellectual Property Rights: A Survey," IEAS Working Paper : academic research 09-A007, Institute of Economics, Academia Sinica, Taipei, Taiwan.
    4. Schneider, Patricia Higino, 2005. "International trade, economic growth and intellectual property rights: A panel data study of developed and developing countries," Journal of Development Economics, Elsevier, vol. 78(2), pages 529-547, December.
    5. Jaume Ventura, 2005. "A Global View of Economic Growth," Working Papers 203, Barcelona Graduate School of Economics.
    6. Cristobal Campoamor, Adolfo, 2015. "On Endogenous Product Cycles under Costly Trade," MPRA Paper 67289, University Library of Munich, Germany.
    7. Hsiao-Lei Chu, 2015. "Outsourcing in Product Cycles," Review of Development Economics, Wiley Blackwell, vol. 19(4), pages 941-956, November.
    8. Cragun, Randy & Tamura, Robert & Jerzmanowski, Michal, 2017. "Directed technical change: A macro perspective on life cycle earnings profiles," MPRA Paper 81830, University Library of Munich, Germany.
    9. Mondal, Debasis & Ranjan Gupta, Manash, 2009. "Endogenous imitation and endogenous growth in a North-South model: A theoretical analysis," Journal of Macroeconomics, Elsevier, vol. 31(4), pages 668-684, December.
    10. Chui, Michael & Levine, Paul & Pearlman, Joseph, 2001. "Winners and losers in a North-South model of growth, innovation and product cycles," Journal of Development Economics, Elsevier, vol. 65(2), pages 333-365, August.

    More about this item

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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