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Trade in final goods and the impact of innovation

Author

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  • Añón Higón, Dolores
  • Stoneman, Paul

Abstract

This paper analyses how innovations in imported final goods impact via terms of trade effects upon welfare growth in the domestic economy. It is shown that the impacts, although differing across countries, are quantitatively significant and worthy of further consideration.

Suggested Citation

  • Añón Higón, Dolores & Stoneman, Paul, 2011. "Trade in final goods and the impact of innovation," Economics Letters, Elsevier, vol. 110(3), pages 197-199, March.
  • Handle: RePEc:eee:ecolet:v:110:y:2011:i:3:p:197-199
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    References listed on IDEAS

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    1. Marcel P. Timmer & Mary O’Mahony & Bart van Ark, 2007. "EU KLEMS Growth and Productivity Accounts: An Overview," International Productivity Monitor, Centre for the Study of Living Standards, vol. 14, pages 71-85, Spring.
    2. Robert C. Feenstra & Alan Heston & Marcel P. Timmer & Haiyan Deng, 2009. "Estimating Real Production and Expenditures across Nations: A Proposal for Improving the Penn World Tables," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 201-212, February.
    3. Charles R. Hulten, 2001. "Total Factor Productivity: A Short Biography," NBER Chapters,in: New Developments in Productivity Analysis, pages 1-54 National Bureau of Economic Research, Inc.
    4. Diewert, Erwin, 2008. "Changes in the Terms of Trade and Canada's Productivity Performance," Economics working papers diewert-08-03-11-11-03-49, Vancouver School of Economics, revised 18 Jul 2008.
    5. Gopinath, Munisamy & Kennedy, P. Lynn & Roe, Terry L., 1995. "Trade, growth, and welfare linkages in North America: An empirical analysis," The North American Journal of Economics and Finance, Elsevier, vol. 6(2), pages 189-201.
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    Cited by:

    1. Richard Frensch & Jan Hanousek & Evzen Kocenda, 2016. "Trade in Parts and Components across Europe," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 66(3), pages 236-262, June.
    2. Richard Frensch & Jan Hanousek & Evžen Kočenda, 2012. "Specialization, gravity, and European trade in final goods," Working Papers 320, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).

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