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Technology spillovers embodied in international trade: Intertemporal, regional and sectoral effects in a global CGE framework

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  • Parrado, Ramiro
  • De Cian, Enrica

Abstract

This paper uses a dynamic Computable General Equilibrium (CGE) model to assess the intertemporal and spatial dimension of technology spillovers embodied in international trade. Three are the main contributions of the study. First, link capital- and energy-productivity to machinery and equipment (M&E) imports using an empirical estimated relationship. Second, analyze the implications of specific spillovers embodied in trade of M&E. Third, analyze the interaction of climate and trade policies when accounting for indirect effects induced by spillovers. We find that explicitly modeling trade spillovers reveals significant effects thanks to the transmission mechanisms underlying imports of M&E. We then assess the net contribution of modeling trade spillovers within three policy scenarios. The aggregated net effects of spillovers are rather small confirming findings from previous studies. However, international and intersectoral redistribution effects can be significant.

Suggested Citation

  • Parrado, Ramiro & De Cian, Enrica, 2014. "Technology spillovers embodied in international trade: Intertemporal, regional and sectoral effects in a global CGE framework," Energy Economics, Elsevier, vol. 41(C), pages 76-89.
  • Handle: RePEc:eee:eneeco:v:41:y:2014:i:c:p:76-89
    DOI: 10.1016/j.eneco.2013.10.016
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    More about this item

    Keywords

    Computable general equilibrium models; Climate change; Economic growth; Technological spillovers;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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